Following on from the bombshell that the Government is scrapping 100% mortgage interest relief on all Buy to Let (BTL) properties, the National Landlords Association is expecting landlords to sell off 500,000 properties over the next year.
The profit margins for investors are due to shrink with Government changes announced in the most recent budget by George Osbourne. While many investors complain that it’s another attack on the housing market, there are steps you can take to protect yourself and your investments. The Government changes are as a result of the Buy to Let market becoming too large and potentially unstable – making it more difficult for first-time buyers to get on the housing market.
Unfortunately, the Government has another nasty shock in store for sellers. Any profit made will be subject to Capital Gains Tax.
Basic rate tax payers will pay 18% and higher rate tax payers will pay 28%. These payments are mandatory UNLESS you plan ahead.
To find out your options, contact www.pivotalfinancialplanning.com now.
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