From 2017 the amount that some landlords can claim in tax relief on their finance costs (such as mortgage interest payments, interest on loans to buy furnishings and fees incurred on taking out and repaying mortgages) is being gradually reduced over 4 years on a tapered method.
When the new restrictions are fully in force from the beginning of the 2020/21 tax year, landlords will be only be able to claim tax relief, in the form of a tax credit, at the basic tax rate of 20%, instead of 40% or 45% for those in higher or top rate income tax brackets respectively.
Landlords will also have to change the way tax is paid when their buy-to-let property is sold. Currently capital gains tax is due at the end of the tax year. But from April 2019 landlords will have to pay their capital gains bill within 30 days of selling a property.
But it’s not all bad news, as with many things, the success of your property portfolio will come down to good planning.
The issues and questions surrounding incorporation and ownership structure of buy to let portfolios can be complex and legalistic. With increased legislation and regulation, this makes running a buy to let portfolio fraught with risk.
Visionary Accountants’ specialist team can help you consider the viability of incorporating your property portfolio and planning the future profitability of your existing properties.
Whether you have one property or one hundred, and whether you require one-off specialist advice or ongoing services, you will benefit from a property tax expert working with you to achieve your aims.
Please do not hesitate to contact us to discuss how we can help you manage your land and property liabilities and costs.
Our team of Accountants and Tax experts will be happy to meet with you to discuss your business requirements. Complete the form below or call 01727 730550 to arrange your FREE initial consultation.
Receive essential Tax Tips and Updates from Visionary Accountants.