The new buy to let tax changes that are being phased in over the next few years will have a significant impact on all landlords.
For many with mortgages it may make the whole proposition a non starter. It is now possible to end up in a position where a landlord can pay more in tax than they earn in revenue from the buy to let investments.
The. also has a feature on the tax changes.
The subject is also covered bywhich considers the question of placing buy to let properties in a Ltd company where it would bring the advantage of full tax relief on interest but introduces other serious potential disadvantages.
These buy to let tax changes are very significant and one where professional advice should be taken before taking any steps, either as an existing buy to let landlord or for anyone contemplating entering the market.
There are steps that can be taken that may mitigate the effect but they depend on an individual’s personal circumstances, the size of any mortgage, the future of interest rates and of course on any future changes to the tax regime. Any steps taken may effect existing tax mitigation strategies on inheritance tax planning, pensions etc. Advice is essential before taking any action.
For those with a significant mortgage on their buy to let property you must consider at the very least the implications of an interest rate rise and a reduction in the relief currently obtained.[thrive_toggles_group"]
Would you like a no obligation consultation with an FCA registered adviser?. ( Click here)
Complete this form for a no obligation consultation with an FCA registered adviser.