Axe the Tenant Tax – Buy-to-let mortgage tax relief setback

Posted by Ben Storey on Nov 6, 2016 in HMRC, tax | 0 comments

In October 2016, the group legally challenging the government’s decision to cut tax relief on buy-to-let loans, suffered a setback when their challenge was rejected by a judge advising that it was “bound to fail” and therefore should not proceed to court. The group is called “Axe the Tenant Tax” and was represented by Cherie Booth QC who owns buy-to-let properties and therefore has an interest in the case. If the challenge had been successful then the plan would have been put on hold until the courts had time to consider the case in full. What are the changes to buy-to-let mortgage tax relief? Starting in April 2017 and over a period of 4 years, tax relief at higher rates will be phased out for interest on loans to buy or improve buy-to-let residential properties. Therefore from April 2021, the maximum tax relief will only be available at the basic rate. If you are a basic rate tax payer only, then you won’t be affected. If you think you may be affected please don’t hesitate to get in touch to see how we can help you. Courtley West Chartered Certified Accountants Wakefield    ...