Buy-to-let tax – Budget 2017
Former Chancellor George Osborne unveiled a change in 2015 that will remove landlords’ ability to deduct the cost of their mortgage interest from their rental income when they calculate a profit on which to pay tax, and Philip Hammond’s first Budget as Chancellor has not moved from this.
The changes are being phased in from 2017 and fully implemented by 2020. From 6th April 2017, 75% of mortgage interest can be deducted against rental income to calculate profits. This will decrease by 25% each year until none can be accounted for in the 2020-21 tax year. For more information on what the 2017 Budget changes might mean for you please click here