Confused about changes in tax relief on mortgage interestMake Text Bigger
When the Chancellor first released details of the changes to taxation for buy to let landlords, it was implied that they would only make a difference to those paying the higher rate of tax.
Then it became apparent that, by the time it was fully implemented, all landlords would be restricted to an allowance of 20% of their finance costs to be set against profits.
So surely as, whatever tax bracket we are in, we are all currently able to offset the whole of our finance costs against profits,for tax purposes, this will have an impact on all of us?
I am (currently anyway) a basic rate tax payer with 4 rental properties (and 3 mortgages) and am anticipating that the changes will impact on me, but now I read on moneyfacts.co.uk that ‘if you’re a landlord who only pays basic rate tax, this change won’t affect you’
Am I being a bit dim here?
Can someone clarify the position for me please?
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