Government Changes To Tax Relief For Buy To Let Landlords

You may well have heard about the upcoming changes to tax relief for Buy to Let landlords that are due to start taking effect from 6 April 2017. 

What are the changes?

• Finance costs including mortgage interest can no longer be deducted when calculating taxable income. 
• The amount of tax relief you claim on finance costs will be capped at the basic rate of tax, which is currently 20%, and will be given by a reduction to your tax liability. 

This may affect iof you're a higher or additional rate tax payer, or could even move you from a basic to higher or additional rate tax payer. 

The changes are due to be phased in from April 2017 through to April 2020. This means that the treatment of your finance costs will transition away from the current tax rules from April 2017. 

No information within this update shoudl be taken as tax advise. For advise please consult with an independent tax advisor.