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.
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
8 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
9 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
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.
20 May 2025
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.