Landlord Tax Relief Changes On Investment Property
With the new tax year having started last month, the latest changes to landlord tax relief come into force. Online agent MakeUrMove have detailed what landlords need to know about the latest changes.
In April 2017, the government introduced plans to reduce the level of mortgage interest tax relief for buy to let property investors.
Before this, landlords would be able to deduct mortgage interest and other costs associated with their rental property before they could work out the taxable profit.
Since its introduction, the government implemented a phased approach to the reduction in tax relief for buy to let investors. From 100 per cent in the financial year of 2016/17, it has reduced to 75 per cent in 2017/18 and 50 per cent in 2018/19.