Restriction of financial costs

23rd April 2020 posted in Landlords

Landlords are no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. Landlords will instead receive a basic rate reduction from their income tax liability for their finance costs. The restriction has been phased in gradually since 6 April 2017 and is fully in place from 6 April 2020.  At the Summer Budget 2015, the then Chancellor announced that the amount of Income Tax relief landlords can get on residential property finance costs will become restricted to the basic rate of tax, which currently stands at 20 per cent.  Landlords should consult a Tax Advisor for a more in-depth analysis of their obligations and also you can read more information on the website which also offers videos, webinars and a property rental toolkit to help.