Contributed By Hawkins Hatton Corporate Lawyers Ltd
Landlords were able to deduct the payment of the mortgage interest on the property from their income so as to reduce their income tax liability. From April 2020, however, new legislation will mean that a landlord will only be allowed a 20% tax credit for mortgage interest paid. This has two main implications for landlords:
This change will no doubt impact on investment by landlords in buy-to-let properties.
Individuals pay ‘non-resident’ CGT (NRCGT) at 28% on any (post-April 2015) gains made on UK residential property if they are non-resident for tax purposes.
From 6 April 2019, NRCGT is extended to (post-April 2019) gains in respect of commercial property, albeit with certain exemptions.