Buy-to-let taxes are causing widespread confusion, a new poll by Simply Business reveals. Nearly three-quarters of respondents are unhappy with the current process and communications.
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74% of landlords are unclear about buy-to-let tax rules
Our poll is still open, but so far 74 per cent of 374 voters say that landlord property taxes aren’t clear enough.
And it’s not the only poll of its kind – we reported in April on a survey run by Upad, which found that one in five landlords were unaware of the most recent tax changes, and that nearly half were unsure of how much they’d be paying in tax, by the time mortgage interest rate relief changes roll around in 2020.
As reported, fines of up to £30,000 can now be applied, for a range of housing offences. It clearly pays to double-check you’re doing everything on the right side of the legislation, even if you haven’t been worried in the past.
2017 buy-to-let tax changes and how to stay legal
Our articles never constitute advice or apply to individual situations, but we do like to keep our landlord readers up-to-date with the latest in buy-to-let tax.
Have a read through our comprehensive guide to 2017 buy-to-let tax changes, and here’s a quick summary of the rulings and legislation you need to check and keep an eye on:
Mortgage interest tax relief reduction
One of the major tax changes for landlords in 2017 is the reduction in tax relief for buy-to-let mortgages. Landlords can now only offset 75 per cent of their mortgage interest payments against their rental income. By 2020, this particular tax relief will be completely phased out. Check out the full story.
20 per cent tax credit
Though mortgage interest tax relief is being phased out, it will be replaced by a 20 per cent tax credit. Under the new scheme, 20 per cent of the mortgage interest cost can be offset against the tax. For most landlords, this will mean paying substantially more in tax than they currently do. Find out how you can mitigate these costs.
New fines for housing offences
A number of new fines for housing offences were introduced earlier this year. The offences, which range from failing to obtain an HMO licence to overcrowding a property, can carry penalties of up to £30,000. Read more about the new landlord rules.
What do you think? Is buy-to-let tax unnecessarily confusing? Add your vote to the poll.