Tax changes an attack on the industry

Jessica Nangle

July 10, 2017

Section 24 tax changes felt like an attack on the industry and on landlords, according to Mark Lawrinson, regional sales director at Portico.

Less buy-to-let properties are recorded to have been purchased because of the tax changes that came into effect in April which Lawrinson said has “resulted in a reduction in the number of properties coming to market”.

This comes as landlords are set to face new legislation and tax changes this year.

Together reveals changes for buy-to-let portfolio landlords

Nick Marr, co-founder of TheHouseShop.com, said: “Anyone with a financial stake in the rental market should be paying close attention to these developments and explore the options to minimise damage to their investment.”

From 2020 when new rules take full effect, mortgage interest payments will no longer be able to deduct mortgage interest payments as a cost before working out profit.

Martina Lees, author of The Accidental Landlord, added: “Many accidental landlords will only realise how much the tax changes will cost them when they file their tax return next year.

“Don’t wait until it is too late.”

Property experts warn that the consequences are severe if sums are not properly calculated in line with the changes.

Camilla Dell, managing partner at Black Brick, added: “Buy-to-let landlords really need to do their sums and make sure not to leverage too highly, or they could fnd themselves in negative cash flow.

“For higher rate taxpayers with high levels of borrowing against buy-to-let properties, this will lead to significant increases in their tax bills.”

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