New rules on how interest deductions can be tax relieved on BUY to LET income or second home income is to be phased in from April 2017
The new rules will start to be phased in from 16-17 Residential buy to let interest deductions are being phased out for individuals, Partnerships and LLPs. There will still be a 20% allowance for interest which will be claimed as a tax reducer from overall tax owing. These new rules could have major implications on landlords and we are currently looking at strategies to deal with this for landlords, depending on their circumstances.
We would recommend landlords to address this now and we are here to help. We are talking to clients and non clients in this area and we are happy to look at your individual circumstances if you have one rented out property or a large property holding, so please call to arrange a meeting.
The general restriction is based on a restriction of 25% for each tax year from 2017-18 through to 2020-21 as follows
| 2017-18 | 75% of interest tax deductable | 25% Reducer |
| 2018-19 | 50% of interest tax deductable | 50% Reducer |
| 2019-20 | 25% of interest tax deductable | 75% Reducer |
| 2020-21 | 0% of interest tax deductable | 100% Reducer |
Please call if you would like to discuss this or any issue. We are happy to offer a free 1 hour meeting to go over any issues or questions you have.
