A new tax year begins tomorrow along with changes for buy-to-let landlords

April 5, 2017

Tomorrow the 6th April is a new tax year, it is when buy-to-let landlords will begin to feel the direct effects of the next tightening of taxation of the sector.

The Council of Mortgage Lenders (CML) in a recent news release headlined ‘Tax changes put more pressure on buy-to-let landlords’ point out that, from the 6th April 2017, tax relief on landlords’ mortgage costs will be restricted to the basic rate of income tax, and that over the next three years, the proportion of their borrowing costs that landlords can offset against tax will taper down to zero.

The ever increasing burden upon buy-to-let landlords includes a new raft of restrictions limiting what landlords can offset against tax, this  follows the introduction of higher rates of stamp duty on property purchases by landlords.  Landlords are affected by new rules restricting other deductible expenses that they incur from renting property, including reforms limiting tax relief for wear and tear in fully furnished properties, highlighted in the CML news release.

The government has published guidance and a series of worked case studies to assist landlords to work out the tax relief and  assess the impact of the finance cost restriction.

Read the informative news release from CML in full click here.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Renters’ Rights Act already driving surge in tenant complaints

“Renters’ Rights effect” drives unprecedented demand dispute resolution Industry redress scheme flooded with enquiries ahead of Act going live in May   THE IMPENDING implementation of the Renters’ Rights Act has already led to unprecedented demand for The Property Ombudsman’s services, as more tenants seek support to resolve disputes fairly and independently. In the four…
Read More →
Breaking News

Rights Act: Key changes renters need to know — new rules start on 1 May 2026

The Renters’ Rights Act is a major overhaul of the rules that govern renting in England, the biggest in decades. Propertymark, the UK’s leading body for property professionals, wants renters to understand what’s coming and how it will affect them. The next wave of changes under the Act will take effect on 1 May 2026.…
Read More →
Breaking News

What Would Make Me Stay: How Tenants Are Redefining What Home Really Means

68% of tenants say the single biggest factor that would make them stay in their rental home long term is the relationship with their landlord or agent, above rent levels, location, or the quality of the property itself. That is the headline finding from LRG’s Winter 2025/26 Lettings Report, and it points to something the…
Read More →
Breaking News

Competition for rented homes falls to lowest level in six years

More homes for rent and a drop in demand eases the pressure on renters Competition for rental homes falls to six year low with 4.8 enquiries per property Increased supply sees the number of homes available for rent up 11% on last year Meanwhile demand for rental properties falls 14% year-on-year on lower migration and…
Read More →
Breaking News

Mortgage lending now supports 30% of housing stock

Mortgage lending now underpins 30% of England’s housing stock, rising to as high as 42% in the country’s most mortgage-reliant locations. At the same time, many areas of the market have seen a notable increase in the number of homes owned with a mortgage over the last three years, highlighting the continued strength and resilience…
Read More →
Estate Agent Talk

Is it worth buying a fixer-upper property?

The latest research from eXp UK reveals that fixer-upper homes can be picked up for an average saving of more than £44,000, but when the cost of renovating the property is accounted for do homebuyers actually stand to make a saving? And what chance do buyers have of finding one on today’s market? Fixer-uppers are…
Read More →