Will you be affected by the new buy-to-let tax?

Higher-rate taxpayers can no longer offset all their mortgage interest against rental income before calculating the tax due. This will lead to higher tax bills even if investors have not seen their income increase.

While the move mainly affects those who already pay higher-rate income tax, it will push some basic-rate taxpayers into the higher-rate bracket once their rental income has been taken into account. Others will lose means-tested benefits.

It is vital that landlords speak to their tax adviser about the implications, they’re options and what to do next.

 

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