Buy to let tax relief is still set to total around £15 billion annually even after changes to tax relief are introduced, according to research by letting agency ludlowthompson.
The agency claims that after planned changes to tax reliefs become effective in 2018-19, landlords will still be able to claim approximately £6.3 billion on interest rate payments made on loans used to purchase buy to let property.
Chancellor George Osborne has already announced that he expects total revenue to rise to £1 billion by 2020-21 after reducing the tax reliefs available to buy to let investors on interest payments and property maintenance. From April 2016, the government will change the wear and tear allowance to the direct cost of replacing furnishings and white goods, instead of being 10 per cent of rental bills.
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