Brokers have been warned they could be on the hook if they fail to discuss the impending rise in stamp duty and cuts to tax relief with every landlord client.
Writing in the January issue of Mortgage Introducer Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, said: “One of the biggest risks facing advisers is on buy-to-let.
“It is now essential that all advisers are raising the income tax and stamp duty changes as part of the process on all transactions.
“They need to record that they have discussed the changes and advised the landlord to take advice from their accountant or a tax specialist.”
From April all buy-to-let purchases will be subject to a 3% surcharge on the existing stamp duty bill while from 2017 landlords will see the tax relief they can claim against mortgage payments start to reduce from a maximum of 45% to 20% over the following three years.
Sinclair added that brokers should not place a case with a lender without confirmation that the borrower is aware of the forthcoming changes.