The new tax year brings a punishing regime for those with buy-to-let property portfolios, which could result in losses if no action is taken, Advies' IFA Alex Reynolds has warned.
Under measures announced by then Chancellor George Osborne in the 2015 Summer Budget, from this April landlord tax relief on mortgage interest payments will gradually be cut from a marginal rate of up to 45% to a flat rate of 20%. This means property owners will not be able to offset as much of their interest payments against tax, resulting in higher tax charges, and in turn putting many at risk of being pushed into higher tax bands. From last April buy-to-let investors have also incurred an extra 3% stamp duty on second homes, as part of a pack of measures designed by the government ...
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