Buy to let tax changes
The chancellor recently announced changes to how income from rental properties is taxed which will affect landlords who have mortgages on their rental properties. Our useful calculator will show how this will affect you year on year as the changes are phased in. By April 2020 the new tax rules will be fully in place, meaning only basic rate (currently 20%) tax relief is available. For 40% rate payers that means a new 20% tax bill on income up to the value of mortgage interest paid and for 45% rate taxpayers the it'll be a 25% income tax bill.
It makes sense to ensure you are on the best buy to let mortgage deal to keep your total costs down, and changing the interest rate will show you the effects of this. However it makes sense to speak to one of our expert advisers to make sure you are getting best deal.