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If you are anything like us, as soon as the festivities are over, it will be time to turn your attention to the self assessment returns. This year, Landlords will need to be aware of the tax changes that are being introduced over the next 4 years. A recent survey suggested that 26% of landlords were not aware about these tax changes, so we wanted to break this down and explain what it means for you. 


In 2015 the Government made an announcement that Landlords, who were high-rate or additional-rate taxpayers, would no longer be able to deduct mortgage interest from their rental income. This meant that they could only secure relief on the interest at the basic tax rate rather than the higher level they had enjoyed up to this point. This applies to landlords who own personal property as well as those letting property in a partnership, but they have yet to be applied to furnished holiday lets or properties held in a company. Introduced from 6th April 2017, the loss of relief will not disappear automatically as relevant tax returns can be submitted any time between then and 31st January 2019, so there are a few years until the changes will be fully felt by all Landlords.

Landlords who own their properties outright will not see any difference to their tax bills. Additionally, Landlords circumstances will only change if they are currently a higher or additional-rate taxpayer. 

So in essence, depending upon your portfolio and personal circumstances, there could be a loss of tax relief that you will need to be aware of when completing your tax returns.


How we can help...

We understand that this may seem daunting and we are happy to answer any of your questions regarding the changes to the tax system.  We have vast experience in the industry with many employees being landlords themselves so we understand how the changes will effect you.

We are also able to recommend trusted accountants and professionals who could review your personal situation and give you personalised advice, specific to your portfolio. So whether you have one property or twenty properties, we can support you individually and help you plan for the future to minimise the financial impact on you

If you think that you are going to be affected by these tax changes and would like some advice, please contact richard.read@pinnacle-group.com and we will be happy to answer any questions in our capacity or suggest qualified professionals that will be able to give a more tailored solution.

We look forward to hearing from you and supporting you with this and all future changes within the industry. 

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