@CharLRendall Can you clarify the details on the restrictions on finance costs for landlords
From 6 April 2017, interest relief will be gradually reduced for higher rate tax payers.
They will still be able to deduct some of their finance costs against their rental income, but part will be replaced by a basic rate tax decuction.
For 2017-2018, 75% of finance costs will be deductable against rental income. The remaining 25% will get a tax reduction of 20% on it.
So: Total finances cost of £10k
75% can be set against remntal income – £7,500
Overall tax bill for the year will also be reduced by £500
(remaining £2,500 at 20%)
By 2020-21 tax year, none of the finance charges will be deductible against rental income and the whole £10k will instead get a tax reduction of £2,000 for the year.