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.
