Landlord finance changes – lesser known impacts
The Low Incomes Tax Reform Group (LITRG) has published guidance showing how even basic rate taxpayers can be impacted by the ongoing landlord finance changes.
Changes started to be phased in from 6 April 2017, that restrict landlords' tax relief for finance costs such as mortgage interest to the basic rate of tax rather than an individual’s marginal rate. The changes will have taken full effect by the 2020/21 tax year. Although the changes are aimed at higher and additional rate taxpayers, there can be knock-on effects for basic rate taxpayers too.
The Low Incomes Tax Reform Group has published new guidance that may be of use to those with property income.