Buy to let tax changed

Buy to let tax changed

From April 2017 the way higher rate tax payers are taxed on their rental properties will change. Instead of receiving tax relief on your mortgage interest at your prevailing tax rate you will now receive a flat 20% credit against your profit. This will lead to an increase in tax for all higher rate BTL owners. It must be noted that Limited Companies owning the BTL properties are not affected, so all new properties should be considered to be held in a Limited Company.

Share this post