Well that is an interesting question from a purely tax perspective!
At the time of writing, there has been quite a shake up in the taxation for buy to let landlords.
Well what has changed?
Quite a bit really, and here is a taster:
· From 6 April 2016 the 10% “wear and tear” allowance for furnished lettings is no longer available although you will be able to claim costs actually incurred on replacement furnishings;
· If you are buying a second home or a buy to let property then from 1 April 2016 a 3% Land and Buildings Transaction Tax (LBTT) charge will apply in Scotland (with a similar 3% Stamp Duty Land Tax (SDLT) charge for the rest of the UK as LBTT replaced SDLT in Scotland in April 2015) in addition to any LBTT due already. The new tax will affect properties which cost more than £40,000;
· Higher rate tax relief on interest on loans to buy rental residential property is being phased out from 6 April 2017.
Where can I find out more?
You could speak with us to see if we can help, or your tax adviser, accountant, or read further using our link to HMRC’s website:
Picture Courtesy of The Guardian
The above is for general guidance only. Buick & Co Chartered Tax Advisers and Tax Consultants take no responsibility whatsoever for this blog, its reliability or any actions you take having read it.