One of the biggest tax changes is that landlords are going to start to be taxed on their revenue rather than their profit.
As from April 1 changes have been made to the wear and tear allowance, previously a landlord could claim up to 10% against tax for wear and tear each year, from now on a landlord can only claim for actual costs of damage or repair to their property.
As from April 2017 relief on mortgage interest costs will be capped at 20%, a process which will be introduced gradually until 2020. This could really affect higher rate taxpayers who are used to having up to 45% relief, especially if interest rates rise in the near future.
The Government’s rent a room scheme – you can now own up to £7,500 a year before having to a pay any tax on your income. Read more at https://www.intercounty.co.uk/blog/earn-up-to-7500-by-renting-out-your-spare-room.
As a landlord you will probably be aware of the stamp duty levy recently introduced on buy to let properties, if you would like to calculate how much you might need to pay please check out our stamp duty calculator https://www.intercounty.co.uk/blog/property-investors-use-our-stamp-duty-calculator
If you are looking at investing in property or are already a landlord and need some help and advice why not pop into your local branch of Intercounty for a coffee and a chat or give our team a call on 0844 8111090.