Owning a rental property is set to be more expensive

Second home owners and those owning rental properties must brace themselves for some changes being introduced in April 2020.

Buy to let landlords have been able claim certain expenses to offset against rental income to reduce their tax bill. This includes mortgage interest payments. Higher and additional rates of tax relief on mortgage interest is being phased out and will be restricted to 20% for all landlords from April 2020.

These changes, together with the changes to the date that CGT has to be paid (reported in our December 2019 newsletter) means that for many, owning a second home or rental property is about to get a lot more expensive.

To discuss this or any other property matter, contact us.