Deputy demands end to “inequitable” landlord tax break

Mortgage interest tax relief on buy-to-let properties could be scrapped after a Reform Jersey politician lodged fresh proposals to do away with the “inequitable” tax breaks for landlords.

Deputy Catherine Curtis is calling on the Treasury Minister to “undertake all necessary actions to remove interest tax relief on buy-to-let mortgages”, with the change built into the government’s next budget.

The move follows a narrow defeat last year, when a similar amendment fell by just two votes – 19 in favour and 21 against.

At the time, Deputy Elaine Millar urged politicians to reject the proposal because a consultation was under way.

The consultation began in June 2025, with responses published in September and a final report due to go before the Council of Ministers in early 2026.

“I think it is only reasonable to expect that this matter should be concluded by now,” said Deputy Curtis, noting that the issue has effectively been under review since 2023.

She highlighted that just 18 people responded to the consultation – 11 of whom were landlords – arguing that this was “not representative and not a good reason to delay this matter”.

The government’s own consultation document estimated that scrapping the landlord tax relief would raise around £2 million a year, which Deputy Curtis argued “could be of great benefit through many different projects”.

While opponents have warned that landlords might simply increase rents to compensate, Deputy Curtis said this is “not an effective argument”.

She explained that around 80% of rental properties are owned mortgage-free – meaning the measure would affect a relatively small proportion of landlords and limit its overall impact on rents.

She also drew comparisons with last year’s Budget debate, when States Members voted against restoring mortgage interest tax relief for homeowners, while her own proposal to remove it from landlords was only narrowly defeated.

Deputy Curtis described this as “a clear representation of the Assembly’s view” and argued that retaining the relief for buy-to-let mortgages is “inequitable”.