If you’re a Business Owner …
We think there are several ways which this proposed tax change might be of concern to you.
Firstly, you may have employees that you’ve attracted from elsewhere in the country and in relocating to you, they will have let their old home. This is now likely to be a burden for them. Maybe it’s a small one, maybe a larger one, but they’re likely to see a financial implication from it which will therefore put pressure on a salary you might pay.
You may also want to temporarily deploy your staff to other parts of the country or world. The same issue applies in that letting of their property will be a tax burden, which they may want you to cover.
You might also employ a lot of tenants and can now see that the change in tax will cause on their rents. That being the case it’ll put pressure on the salaries you pay and may even cause instability as they are likely to be at increased risk of Landlords selling up.
Lastly, with this change, the Chancellor has completely overturned the most established business and financial ‘law’ that there is. It has always been the case that
PROFIT = REVENUE - COSTS
If he can do that in the housing sector, then he can do it in any other one. Just think for a moment what your biggest cost is in your business. What would happen if you had to pay an extra 25% tax of that cost, and to add insult to injury, possibly be shifted up a tax band too??? For Business and an economy to flourish it needs a stable tax regime and the Chancellor proposes completely undermining that need.
If you think that we’re right in what we’ve said and want to stop the proposed tax change on mortgage interest relief please write to your local MP to ask him/her to support you.