Landlords, are you ready for change?
Back to NewsWhilst it was well documented in the media the changes to stamp duty would have on landlords but are you aware of the changes set to be implemented this year?
You should do as they could have a significant impact.
As of the 6th April 2017 the amount of tax relief that can be claimed on financial costs will be gradually reduced to the basic rate of income tax (20%). Although this will not affect all Landlords.
If you are on the higher income tax rate and your buy to let is has a mortgage higher than a 50% LTV then consideration will be needed to try and mitigate the changes. You may consider setting up a Limited Company which are exempt from the charges. This will benefit some Landlords but not all.
Letting fees are set to be banned, although no date has yet been fixed. This may well mean that the cost of the letting agent is passed on to you the Landlord. You will have to make enquiries as to what charges you may potentially incur or whether you set about managing your portfolio yourself. There are obvious benefits but costs and your own time will be factors in your decision.
On the 1st October 2017 the Landlord Blacklist will come into operation which will also include letting agents. Find yourself on this and you will be banned from letting your properties for a minimum of 12 months
If you are a Landlord then contact Tony Randle on 01902 429 051.
