Update on Buy to Let Ownership

The rental property sector continues to hit the headlines with one think tank recently suggesting that government should provide tax breaks to landlords who sell to their tenants and others recommending tax relief on rents from long term tenancies.  Whatever happens the housing sector is set to be a fundamental part of the economy both pre and post Brexit.

 

Now is a good time for landlords to reassess their position given recent changes in the tax treatment of rental income including a reduction in the level of tax relief available on mortgage interest and possible impacts this could have on tax rates, cashflow and the ability, in some cases, to claim some state benefits.

 

Research suggests few landlords took financial advice before jumping in to the market but owning a rental property should be thought of as part of an overall investment strategy and you should consider how it might fit in with long term planning for savings and retirement income.  There are also important considerations when it comes to capital gains tax and inheritance tax planning as passing on a rental property to the next generation could incur significant tax charges.

 

If you already own or are thinking about buying a rental property and would like to discuss both the short term and longer term tax implications please get in touch.