Tax rule change for landlords
Posted on 16 Sep 2013
Landlords remortgaging homes ahead of tax rule change
The Telegraph reports that an upcoming change to the tax rules for buy-to-let investors is seeing a number of landlords taking cash out of their homes in order to pay down mortgages on their rented-out properties. This comes ahead of a shift on rules that means, as of April 6th, higher-rate taxpayers can no longer offset mortgage interest against rental income before calculating tax due. Ray Boulger of John Charcol highlights an alternative strategy, saying some landlords with one or two rental properties are giving property to their spouse to benefit from the lower-earning partner’s basic-rate tax band.
