Buy-to-let landlords given hope over tax reforms
The Summer Budget in the UK included an announcement that interest relief would be limited to the basic rate of tax. This measure will be gradually introduced between April 2017 and April 2020. The Residential Landlords Association (RLA) estimates that a landlord with a £150,000 buy-to-let mortgage on a property worth £200,000 may see their profit fall from around £2,160 to £960 per year. The RLA’s policy driector, David Smith, met with Treasury officials and afterwards reported that is was clear that the government would not be performing a U-turn on the Budget announcement. The RLA have however, been asked to propose other ‘tax solutions’ to the Treasury. As such, the RLA is now asking landlords and letting agents to put forward their own proposals for a new tax relief system. The RLA intend to take received proposals back to the Treasury next month.
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