Changes to Tax for Landlords 2017
Whilst many of us are currently doing our self assessments for the last financial tax year, it is important to know how new tax changes introduced in 2017 will affect landlords of long term properties.
The main change will be to how mortgage interest is deducted from your profit line, no longer will this be the case. For some it will be a real issue as to how to cope with this change and many property analysts are expecting to see an increase in rent to cover the cost of the mortgage or a surge of landlords having to sell.
Alternatively, there could be any overwhelming wave of properties being turned from long term lets into holiday let properties instead, as these are immune to tax changes and operate on a different tax relief basis.
For more information on changes to tax follow this link https://www.gov.uk/government/news/changes-to-tax-relief-for-residential-landlords.