Buy To Let tax changesPMC Partnership
From April 2017 the way you can claim interest on your Buy To Let property changes. From this point you can only claim 75% of the amount for tax relief, lowering to 50% the following year, 25% the year after until finally 0%, when it will be replaced with a 20% tax credit. Obviously this will result in higher tax bills for everyone. One way around this is to put the property into a Limited company, however please be careful as HMRC are investigating this process and it could lead to possible Capital Gains liabilities if you transfer the property. Also remember that from April 2016 the traditional 10% Wear & Tear allowance for furnished BTL’s was abolished and now you can only claim for actual replacements.