Change to taxation of Landlords
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Introduction<br />
The Chancellor unveiled a number <strong>of</strong> major<br />
changes <strong>to</strong> the <strong>taxation</strong> <strong>of</strong> landlords at the<br />
Summer Budget 2015 – brought in<strong>to</strong> effect<br />
under the Finance (No.2) Bill 2015 – with the<br />
potential <strong>to</strong> significantly increase the tax<br />
burden on property portfolios in coming<br />
years.<br />
The most significant change for landlords is<br />
the capping <strong>of</strong> tax relief on mortgage<br />
interest payments. This relief has been an<br />
integral part <strong>of</strong> the growth in the buy-<strong>to</strong>-let<br />
market, and a restriction will <strong>of</strong> course have<br />
pronounced implications. As an indication,<br />
an additional £665million in taxes is<br />
expected <strong>to</strong> be levied on landlords in 2020<br />
alone.<br />
This hand-out is written <strong>to</strong> provide landlords<br />
and their advisers with an awareness <strong>of</strong><br />
these changes and the implications, and the<br />
steps that can be taken <strong>to</strong> help ensure that<br />
property investments continue <strong>to</strong> perform in<br />
this new tax context.
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