Tax Changes Put More Pressure On Buy-To-Let Landlords

On 6 April, buy-to-let landlords will begin to feel the direct effects of the next tightening of taxation of the sector. From that date, tax relief on landlords’ mortgage costs will be restricted to the basic rate of income tax. And, over the next three years, the proportion of their borrowing costs that landlords can offset against tax will taper down to zero. On top of this, landlords are affected by new rules restricting other deductible expenses that they incur from renting property, including reforms limiting tax relief for wear and tear in fully furnished properties. The government has published guidance and a series of worked case studies to help landlords understand how the changes will affect them. Read more on the CML website.