There are currently approximately two million private landlords in the UK according to research from HomeLet.
Countrywide reported that 93% of its landlords have just one rental property.
So the recent changes in Tax Relief by the last chancellor George Osborne are going to affect the long term future of many people (landlords) here in the UK.
If you are a landlord, then you really should be seeking advice from your accountant to find the best way to minimise your exposure to tax.
Down load this PDF from the Mortgage Works (One of our competitors – I don’t think they’ll mind) to give yourself an understanding of the changes. THIS IS IMPORTANT READING FOR LANDLORDS
Here’s just one snippet:
At present, landlords can deduct mortgage interest and other allowable costs from their rental income, before calculating their tax liability. From 6 April 2020, tax relief for finance costs will be restricted to the basic rate of income tax, currently 20%. Relief will be given as a reduction in tax liability instead of a reduction to taxable rental income.
Read the pdf here