Landlords Tax Relief09 Mar 2017
The incoming changes to Landlords tax relief have been well published and it would appear that most Landlords are now well aware of the changes (It was announced in 2015 that the ability to deduct mortgage interest would be gradually phased down for landlords) and are beginning to take advice.
Interestingly, in a latest poll about 30% said the changes would not affect them. Indeed, several reasons were noted as to why a landlord might be unaffected by the changes. For example, if you operate your lettings through a corporate structure, fall below the threshold for paying income tax, transfer the property to a spouse who does not pay tax, or do not take advantage of mortgage interest relief in the first place, the changes would not affect you.
That does, however, leave 70% and although many Landlords are aware of the changes, it is surprising how quickly time passes and independent advice should be taken as to how best minimize these effects – this will depend on the size of your portfolio and your personal circumstances.
Rents in the central belt are strong and the market, on the whole, has performed incredibly well and continues to do so, so whilst these changes are coming, investment in property is still a very good bet and a very good return.
If you are looking to invest, please get in touch and we can offer great local knowledge of the market.