In2017 the government introduced new laws aimed at reducing the tax relief enjoyed by landlords of private buy-to-let properties. The law removed tax relief on loan interest (at the time a landlord was able to set 100% of the annual interest against income) through a phased programme.

April 2020 brings with it the end of this phasing. Landlords no longer enjoy tax relief on interest and instead will be faced with a flat tax credit of 20% for mortgage interest. But it doesn’t end there.

Along with this well-publicised change, there are other changes. Landlords that incur a capital gain liability will now have just 30 days to pay the tax due. In the past such gains were normally included in annual tax returns, making payment a less immediate liability.

In addition, landlords that had previously lived in a property at some point prior to letting it, could exclude gains for that period of occupation when calculating CGT liability and also exclude the last 18 months of gains before the sale. This 18 month period has now been reduced to just 9 months.

The rules around letting relief have also been changed. The previous CGT relief of £40,000 (or £80,000 by joint owning couples) on capital gains realised on the sale of a second residence that was previously their primary residence, is now only applicable if they are living in the property at the time of sale.

Of course, to incur a CGT tax liability, one must first make a capital gain and the good news is that this year the individual annual CGT allowance is £12,800 before tax becomes payable.

Download our Free First Time Buyers Guide

Recent posts

Data shows landlords could miss out on green mortgages due to expired energy performance certificates.

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish. 

The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.

Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months. 

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.

If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.