Landlords who are higher rate or additional rate taxpayers are likely to see a dramatic increase in tax liabilities over the next few years due to the changes to tax relief on loan interest payments which kicked in from April 2017.
After a phased in four year period, landlords will see the tax relief given on their qualifying loan interest payments decrease which will, in turn, push taxable profits up and create larger tax bills. Whist the rule changes were announced in 2015 many landlords aren't aware that the changes will apply to them and the effect they may have. All is not lost though as there may be some steps that can be taken to mitigate the rule changes.
This is not legal advice; it is intended to provide information of general interest about current legal issues.
For more information on the changes here or contact Marc Dorsett on 01245 228146 or dorsettm@gepp.co.uk
