Landlords must assume tax relief changes will come into force in April

摘要

Currently, buy-to-let landlords can deduct their finance costs, including mortgage interest, from their rental profits before calculating their taxable income, This has the effect of reducing the amount of income tax landlords have to pay However, in thejuly 2015 Budget, then chancellor George Osborne announced that the government would restrict the relief on finance costs to which individual landlords of residential property are entitled, to the basic rate of income tax (20%). The new restriction was passed as part of the Finance Act 2015 and will be phased in over four years, starting from April this year,