Tax Relief On Property Income
Many people consider buy-to-let property as an investment for their future, a potential pension pot or indeed to make the most of their hard earned funds, therefore it is important that the financial elements of buy-to-let reward you where possible.
Currently if you own a buy-to-let property and this is paid for through the use of a loan or mortgage, you are able to claim full tax relief on the interest of the property, reducing the taxable income earned from this from the rent.
As of April 2017 this will no longer be the case with the tax relief on the interest being restricted and reduced on an annual basis until 2020-21 when this allowance is stopped.
[table]
,2017-18,2018-19,2019-20,2020-21
% of income allowed as a deduction,75,50,25,0
% of interest given as a relief at 20%,25,50,75,100
[/table]
This may include looking at options such as moving the properties and loans (full incorporation), paying off the loan/ mortgage on the properties or ensuring you have considered all allowable expenses to reduce the taxable incomes.To help offset these changes, the team at Harvey Telford & Bates Chartered Accountants can advise you on an individual basis of how to manage your income and the future tax relief on property income.
If you would like Harvey Telford & Bates Chartered Accountants to advise on how to best manage your buy-to-let property or portfolio income, and how to navigate the new rules regarding tax relief on property income, get in touch with our team and see how we can help you. Call 01743 462604 or email [email protected].
