There are changes to the tax rules for residential property that could impact upon landlords considerably. From April next year, landlords could find themselves paying higher rates of income tax.
The new regime is complex, as a residential landlord the new measures will restrict the interest that you, as the landlord, can deduct to calculate your income tax liability. The restriction will be gradually introduced over the next 4 years, with interest restricted by 25% in each year, until it takes full effect in April 2020. So in turn, this could mean a 25% increase in tax payable for landlords.
As always, please feel free to contact Michael Burgess on 01782 279615 should you have any questions.