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.
Tax year 2017/18
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.
Tax year 2019/20
For 2019-20, only 25% will be deducted with the remaining 75% given as a 20% tax reduction.
Tax year 2020/21
In 2010-21, all of the interest will only receive a 20% tax reducer.
Do you need help with property tax?
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.