So, tax changes ahead – what does it mean for you and your property in Clapham and surrounds?
Not much, really! Well, that’s a slight understatement. The impact of the taxation changes facing Buy to Let landlords will vary of course. To see exactly how they will impact you let’s look at what has changed: Rent a room relief up to £7,500 per annum from £4,250 Principal home exempt from IHT (up to £1million) Interest payments on loans capped at basic rate of tax (currently 20%) For most of my readers they will be looking at renting whole properties, not necessarily a room in their own home. So the Rent a Room relief, although an admirable initiative to get spare rooms filled in homes (and thus taking the strain off social housing and perhaps even the PRS) is not going to affect many serious BTLers. The same goes for IHT exemptions. These don’t go for BTL properties, so tax still due upon sale of 28%. Interest payments. Now ears must perk up. Although it is reported that 2/3 of BTL property purchased is not subject to finance a you will have read my articles