Section 24 – What’s the big deal?Make Text Bigger
I am a regular reader of Property118 and I find it very useful, especially with the vast amount of useful information that’s made widely available through these forums.
I am a BTL investor myself with 9 properties – my credentials are as follows: annual rental income of £65K with finance costs of £18K and maintenance costs of £10K (all my mortgages are on repayment basis and I have another main source of income).
Ever since the section 24 amendment to the Finance Bill was announced, I have been looking at it purely using mental mathematics and scribbled calculations on scraps of papers, but today I modeled it for my circumstances and in reality (for the figures above), I will lose £900 in the tax year 2017-18, £1800 in 2018-19, £2700 in 2019-2020 and £3600 from 2020-21 tax-year onwards.
I appreciate for those with larger portfolios and higher finance costs, there may be a bit more losses with these changes. I don’t want this post to cause any offence, but while it’s a loss – is it really such a big deal??
Comments/challenges will be interesting to read (and learn from)!!
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