PARLIAMENTARY WRITTEN QUESTION
Landlords: Tax Allowances (6 January 2021)

To ask the Chancellor of the Exchequer, how much additional revenue has been raised as a result of the decision to restrict mortgage interest relief for residential landlords to the basic rate of income tax, in each year since April 2017.

Asked by:
Kevin Hollinrake (Conservative)

From April 2017 to April 2020, the Government phased in a restriction of deductions for finance costs for landlords of residential properties to the equivalent of the basic rate of income tax. The restriction makes the tax system fairer by ensuring landlords with higher incomes no longer receive the most generous tax treatment.

The restriction is estimated to have increased income tax liabilities by about £150 million in its first year (2017-18). Estimates for subsequent years are not available.

Answered by:
Jesse Norman (Conservative)
11 January 2021