Paragon rejects IOD call to end BTL tax relief

Paragon says buy-to-let is a business activity in the same way as investment in a commercial property and, as such, should be treated in the same way. In the IOD’s policy paper on tax and savings, the organisation says the distinction between capital repayments and interest often becomes blurred and this does not create a level playing field between investors in buy-to-let and investors in other assets. Nigel Terrington, chief executive of Paragon, responded saying: “Businesses making investments are entitled to offset their interest expenses against tax. Buy-to-let should be no different...