Southport & Mersey Reporter - Mobile

Click on here to go to latest edition's main page.

  Search Edition Archive  

Visit our online shop...

   

Click on to go to our hub website.

Latest Edition   Archive   Shop   Email   Mersey Reporter
Please support our advertiser below...

.CLICK TO SEE OUR RECOMMENDED BUSINESSES
 

Weekly Edition - Publication date:- 2017-31-03

-en Southport & Mersey Reporter

Local News Report  - Mobile Page

 

Major change to taxation of landlords ahead

THE Chartered Institute of Taxation (CIOT) is reminding landlords of residential properties that the 1st Phase of the restriction of Tax Relief they get for mortgage interest to the basic rate of Income Tax, begins in April. The change means that finance costs such as mortgage interest will no longer be able to be deducted in full to work out taxable property profits. All individual residential landlords with finance costs will be affected. The restriction works by disallowing finance costs in calculating the taxable rental profit, and then introducing a Tax Credit, that is equal to 20% of the disallowed costs.  Brian Slater, Chair of CIOT's Property Taxes Sub Committee, said:- "This is one of the most significant changes to the buy to let market in decades and will particularly affect heavily geared buy to let landlords. However, it is sensible for landlords to be cautious about making any knee jerk moves in response to the changes. A decision to sell properties may be tempting for those that are highly geared, meaning they are carrying a lot of debt from perhaps buying many properties or a couple of expensive ones and can no longer benefit from the relief.  Helpfully the change is being phased in over 4 Tax years, so that the full effect of the restriction will not be felt until Tax year 2020 to 2021. This will give landlords extra time to consider their options. Taxpayers may have to decide whether to continue in buy to lets with reduced profits or simply sell their properties, which may impact on the number of houses and flats available to buy. Or such people could move into commercial property renting, but they will find that to be a more specialised field. The restrictions apply to individual landlords and not to companies, which will continue to receive relief for mortgage interest and other finance costs in the usual way. This means that the change may impact on the look of the rental landscape in the future if many individual landlords choose to incorporate and become companies, although this is not without difficulty and incorporation itself can involve Tax charges; these may be Stamp Duty Land Tax on the market value of properties and possible Capital Gains Tax on properties transferred into a company."

 

News Report Page Quick Flick.

Click on here to go to the mobile menu page for this edition. News Report Page Quick Flick
 

Read this page.

Southport Reporter (R) Bourder


  


 

 

 RSS Our Weekly Headlines

 


(+44)  08443 244 195
Calls to this number may be recorded for security, broadcast, training and record keeping.
 

4a Post Office Ave, Southport, Merseyside, PR9 0US, UK

 

Click on to see our Twitter Feed.  Click on to see our Facebook Page.  Click on to follow our LinkedIn Profile. This website is licence to carry news from Vamphire.com and UK Press Photography. 

This is our media complains system...

We are regulated by IMPRESS, the independent monitor for the UK's press.

How to make a complaint
Complaints Policy
Complaints Procedure
Whistle Blowing Policy

 



Southport Reporter® is the
Registered Trade Mark of Patrick Trollope

...