Buy To Let Tax changesPMC Partnership
Buy to Let tax changes
The Government is hammering the landlord with the latest planned tax changes to the Buy To Let residential market.
From April 2016 the flat 10% wear & tear allowance is being replaced by just being able to claim for replacement of actual capital items.
More importantly from April 2017 the way that mortgage interest is treated is changing. Instead of claiming the entire amount against your income, now the rental income will simply be added to the rest of your income and then a 20% credit for interest will be deducted – this will hit everyone tax wise but especially the higher rate tax payers.