News & Updates

01/10/15
This years budget announcements included proposals on restricting tax relief available to landlords with mortgaged properties.

The intention is to phase these in over a 5year period to be completed by the end of the 2021 tax year.

The first phase in tax year 2016-17 sees the abolishment of Wear and Tear Allowance – instead landlords will only be allowed to claim the actual expenditure incurred.

The following four tax years will see restrictions on allowable mortgage interest at the following rates:
2017 -18 restriction of 25%
2018-19 restriction of 50%
2019-20 restriction of 75%
2020-21 restriction of 100%

The percentage of the mortgage interest will be added back to the rental profit and the tax calculations will be made based on the tax bracket of the landlord. A deduction of 20% of the interest disallowed will be taken from the tax payable

Here at Jim Clark Accountancy Ltd we deal with a number of property landlords and will gladly advise and support landlords through these changes and more.

If you are a landlord concerned by these and other issues please contact us

Jim Clark

Jim Clark

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Contact Details

Address:
6 West Hillcrest
Lerwick
Shetland
ZE1 0JZ

Tel:
01595696714

Email:
jim@jimclarkaccountancy.co.uk

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