As we embark on the new year, it’s essential to anticipate the challenges awaiting landlords in the ever-evolving landscape of regulations and policies in the
buy-to-let market. In 2017, brokers navigated through many changes, and the momentum doesn’t appear to be slowing down in the upcoming months. Currently, there are 15 active government consultations, each poised to influence landlord clients in various ways.
Adding to the complexity, the deduction of mortgage interest against tax is undergoing another reduction. Landlords will soon only be able to offset 50% of the total cost, with the remaining 50% applicable at the lower tax rate. This reduction is part of a continuous trend, leading to a scenario where all finance costs can only be deducted at the 20% tax rate by 2020.
Navigating this intricate tax landscape will undoubtedly require vigilance and strategic financial planning. As we look ahead, it’s evident that staying informed and adapting to these changes will be crucial for landlords to maintain financial stability and optimise their investments.