Posted by philipcragg - November 27, 2017 12:20 pm
Interest relief for buy to lets
Buy to let landlords reminder
Just a reminder to those buy to let landlords who pay higher rate tax and have mortgage interest deductions.
From this year, 2017-18, the tax relief on interest starts to reduce down to a flat 20% tax reducer by 2020-21. Therefore, tax bills will start to increase as in 2017-18 as only 75% of interest will be deductible with tax relief at the marginal rate and the remaining 25% will obtain a flat 20% tax reducer. For 2018-19, only 50% will be deducted with the other 50% given as a 20% reducer.
For 2019-20, only 25% will be deducted with the remaining 75% given as a 20% tax reduction. In 2010-21, all of the interest will only receive a 20% tax reducer.
If you need any help with your property tax or indeed any other tax help contact a member of our tax team at your local MFW office.
Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Therefore, before taking any action we recommend you get in touch with us to discuss your own situation.