Buy-To-Let landlords planning for the impact of tax change

In a recent YouGov Report, the data collected from the survey revealed that buy-to-let landlords are aware of new taxes and are how to deal with the impact.

After a publication released late last year, the survey was designed to research into landlords in the private sector. It revealed that landlords are having to look at the future of their properties, especially those with a larger portfolio  as they will be most affected by the changes in tax.

In 2015 the announcement came that reduced interest rates would be phased slowly down, so that the amount of interest that would be tax-deductible by any landlord would be 20% by 2020. Out of those surveyed, over two-thirds see that this will have a negative affect to their business, with the higher earning landlords being more concerned. The Council of Mortgage Lenders explained that as around one-third of the landlords were higher-rate taxpayers, they have all ready anticipated the changes and will have plans in place to deal with the impact of the reduced mortgage interest relief. The majority of landlords survey will either be considering re-mortgaging as a way of saving costs or transfer ownership into a corporate structure.

In 2017, there will be additional affordability reviews in place for borrowers applying for their fourth or following buy-to-let mortgages, resulting in landlords being caught out if they intend to grow their portfolio. The majority of landlords though, have all ready put in place strategies to cope with the change and only 10% surveyed said they would consider leaving the letting market due to the changes.

You can read the full article in Best Advice 

Image Credit Helloquence on Unsplash

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