Philip Hammond’s failure to reverse George Osborne’s
deeply unpopular tax reforms will have far-reaching implications for the
buy-to-let industry, it has been predicted. Government plans to strip buy-to-let
landlords of mortgage interest tax relief will have a “detrimental impact” on
households up and down and the country, according to David Hannah, principal
consultant, Cornerstone Tax. From next month, landlords will start to lose the
right to tax deduct their mortgage interest costs at the rate they pay income
tax - currently up to 45%. Instead, they will see this fall over the next three
years and replaced with a 20% tax credit. Hannah has criticised the move,
claiming it will result in rent increases for tenants across the UK. Read more
on the Home website.
