THINKING OF BUYING TO LET, THINK AGAIN
It just had to be too good to be true – use your spare capital to invest in property, let it out and get tax relief on the mortgage interest paid!
Well, things are about to change courtesy of Mr G Osborne. With effect from 6th April 2017 the amount of interest that landlords will be able to claim against income, thereby reducing tax, will be restricted.
This does not mean that Buy-To-Lets are dead in the water. If you are buying-to-let as an investment as opposed to generating an income to live off, then you will ultimately pay off the interest and be able to enjoy the debt-free property – it will just take a little longer to get there! But if you plan to live off the net income, you will find your income falls as more tax is collected from you.