Landlord’s fight buy to let mortgage tax relief changes.

A legal campaign has been launched to fight changes to mortgage tax relief, due to be imposed in April this year. Two landlords started a crowdfunding campaign and managed to raise £50,000 within a week, which has allowed them to pay legal fees.

The changes will reduce the amount of tax that landlords are allowed to claim back on their property investments. This could mean higher rents for tenants as landlords try to recoup income.

Thousands of buy-to-let investors are likely to see earnings impacted, as the maximum relief will be set at the basic rate of tax – 20%.

The changes have already led to increased interest in investment property in 2016 as landlords try to complete their purchases prior to 01 April.

The Chancellor introduced this change to level the playing field between buy-to-let investors and homeowners. In addition, he has brought in other changes such as a 3% stamp duty surcharge on the purchase of second property from 01 April.

It is argued by Mrs Blair that the policy discriminates against individuals investing in property, as it denies them the same rights as business owners. The changes have already led to an increase in applications from limited companies, which have been set up so investors can avoid changes to tax relief regulation.

If you are trying to climb on the property investment ladder before it is pulled up, give us a call at Deal Direct and let us secure you a mortgage offer so you can buy.

Note:

• Deal Direct are mortgage advisers and not financial advisers. To discuss buying property for the purpose of an investment speak to an independent financial adviser.
• Not all mortgages are regulated by the FCA.

 For advice and a quote call us on 0800 048 8828