Limits on tax relief for landlords could be a serious
blow to specialist buy-to-let lenders, analysts at Barclays warned, as the
changes in the Budget undermine some investors' income. Some banks will also
end up being hit by the new 8pc additional tax on profits that George Osborne
has decided to levy on the sector. Mr
Osborne's tax changes limit the tax relief landlords can gain from the interest
payments on their buy-to-let mortgages. Previously they could set the cost off
against their entire income tax bill. Now that relief will be reduced to the
basic income tax rate of 20pc, so higher earners who pay 40pc or more will pay
more tax on their rental income. Read
more on the Daily Telegraph website.
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