Mortgage Tax Relief for Buy-to-Let Properties

Mortgage Tax Relief for Buy-to-Let Properties

Under the old system, landlords were able to claim back the full amount of mortgage interest payments against their rental income, effectively reducing their tax bill. However, in April 2017, the UK government began to phase out this tax relief, limiting it to the basic rate of income tax, which is currently set at 20%.

The changes mean that landlords are no longer able to deduct mortgage interest payments from their rental income when calculating their tax bill. Instead, they receive a tax credit equivalent to 20% of their mortgage interest payments.

This means, if the government charges landlords more tax, the landlords make less profit and they will have less incentive to invest in their properties or to maintain them at a high standard. This can lead to a decrease in the quality of housing, which can negatively impact the security and well-being of tenants.

#TomSoane #MortgageTaxRelief #MortagageInterestTaxRelief #TaxReliefUK #Landlords #PropertyInvestor #LettingManagement #RealEstate #UnitedKingdom

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