Continuing changes to Buy to Let taxation

Matthew Barrand Mortgages

The changes to how rental income from buy to let  properties continues to evolve and has moved into its next phase.

Entry into a new tax year has prompted several  questions from clients, so we thought it would be  wise to recap on how you may be affected.

As advised in previous newsletters, the deduction of  finance costs, including mortgage interest, is being phased out until they can no longer be deducted at  all in 2020/21, when calculating taxable income.

In addition to this, the amount of tax relief that you can claim on finance costs will be capped at the  basic rate of tax, this is currently 20%, and will be given by a reduction to your tax liabilities.