Tax Relief Changes for Landlords
The Financial Conduct Authority does not regulate on some Buy to Let mortgages.
Tax treatment varies according to individual circumstances and is subject to change.
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.
The changes will be phased in from April 2017 and specialist Buy To Let lender The Mortgage Works have produced this fact sheet to help landlords understand how it could affect them.