Tax relief changes for Buy to Let landlords
6 April 2017 marks the start of a 4-year period during which the proportion of the landlords borrowing costs that could be offset against tax will come down to zero.
The changes were announced in the 2015 Budget with the aim to restrict the relief for finance costs including mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. The change will apply to residential property as well as LLPs and partnerships. It will not affect a Furnished Holiday Let, a commercial lettings business or those with property in a limited company.
During the 4-year period the finance cost relief will be restricted for:
• 75% for the tax year ended 5th April 2018
• 50% for the tax year ended 5th April 2019
• 25% for the tax year ended 5th April 2020
• 0% from tax year commencing 6th April 2020
For more details see here