Tax relief changes will hurt property portfolio landlords
Tax information is based on our understanding of the proposed tax legislation as at 15 May 2017, and may be subject to change.
No information on this site should be taken as tax advice. For advice you should consult with an independent tax adviser.
Up until the 2016/17 tax year, landlords could deduct mortgage interest and other allowable costs from their rental income, before calculating their tax liability.
From 6 April 2020, tax relief for finance costs will be restricted to the basic rate of income tax, currently 20%. Relief will be given as a reduction in tax liability instead of a reduction to taxable rental income.
The changes started to be phased in from April 2017,