Single property landlords more aware of impact of tax changes

16% of single property landlords now realisethey will be pushed into a higher Income Tax bracket as a result of BTL tax changes, compared with 7% at the end of last year.

New research released by the National Landlords Association (NLA) reveals that a greater number of landlords are ‘waking up’ to the reality that they may be moved up to another tax bracket.

The BTL tax changes relate to the amount of tax relief residential landlords will be able to claim for finance costs, which will be limited to the basic rate of Income Tax. These changes are being phased in between April 2017 – 2020. Landlords can find out more about the changes to mortgage interest tax relief here.

When the phasing in stage is complete, some landlords may find they are pushed into the higher tax bracket of 40%.

Out of 2.3 million landlords in the UK, ?approximately 1.5 million are single property landlords.

Some single property landlords may be forced to sell, reducing the number of rental properties available for tenants, which includes families.

NLA’s Chief Executive Officer, Richard Lambert, said: “Single property landlords are responsible for providing a huge proportion of the UK’s private rented homes, and these findings show that, slowly, more and more are waking up to the fact their tax bills could be significantly higher in the coming years.”

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Property Reporter