New headaches for landlords
Post by Mearns & Company in News
Squeeze on buy-to-let profits
This is the latest in a series of legislative changes to hit buy-to-let investors and private landlords.
New rules on the taxation of rental income have been phased in since April 2017, curtailing the amount of interest on a buy-to-let mortgage landlords can deduct from the rental payments received, before calculating the income tax due. The latest phase of tax relief reduction came into effect this April and means many private landlords will now pay more tax on their income from letting out a property.
A 4% Scottish stamp duty surcharge (3% in the rest of the UK) has also been introduced on additional property that is not a main residence and applies whether or not the buyer has a mortgage on their existing property.
If you think you may be affected, please let us know.
The value of your investments and the income from them can go down as well as up and you may not get back the full amount you invested.
The Financial Conduct Authority does not regulate tax advice.
Levels and bases of taxation and tax reliefs are subject to change and their value depends on individual circumstances. Tax laws can change.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.