Carl Bayley

The Big Landlord Tax Increase: How to Beat the Cut in Mortgage Tax Relief - 2019/20 edition Carl Bayley

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Publication date: May 2019 - Plain English guide with dozens of examples and tax planning tips.

Many landlords will see their tax bills increase significantly as the tax relief on buy-to-let mortgages is reduced further.

The way the change has been designed also means that many landlords who have been basic-rate taxpayers in the past will end up paying tax at 40%. Some landlords will face other tax stings, including losing their child benefit and income tax personal allowance and paying tax at the 45% additional rate on some of their income.

In some cases the result will be a significant drop in income (50% in one of the examples).

This guide explains how the new rules operate and what you can do to beat the tax increase, including:

Transferring properties to your spouse/partner Using a company Selling property Reducing your buy-to-let mortgages Using alternative investment structures Increasing or postponing tax deductible expenses Bringing forward finance costs Taking bigger dividends now (if you have another company business) Becoming non-resident Making pension contributions