Most Buy to Let (BTL) owners have benefited from 100% interest rate relief meaning that very little or no tax was payable. Did you know that this valuable perk is being withdrawn?
As a result you need to take action now to avoid paying increased tax charges.
Buy to Let lending has increased, according to the Daily Mail, by over 4% to 15.6% in a 9 year period. Investors have benefited over the years from rate relief however the Chancellor, George Osbourne, is taking action to tax people with second properties.
By the end of this month there will be a three percent increase on stamp duty for second homes. From April 2017, the Government is gradually reducing interest rate relief and scrapping it completely from April 2020. Landlords typically paying the basic rate of tax could now become eligible to pay tax at the higher rate.
This will mean a huge increase in Tax payable UNLESS you plan now. To find out your options, contact Pivotal Financial Planning today.
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