From 6 April 2017, landlords will no longer be able to deduct all the mortgage interest from their rental income from residential properties. Instead the deduction will be replaced by a “20% tax reducer”.
The rule is being brought in gradually over the course of the next few years but is already affecting many taxpayers now.
In many cases basic rate taxpayers will become higher rate taxpayers or additional higher rate taxpayers.
Some taxpayers may lose their entitlement to child benefit or the personal allowance.
If you think you may be affected by the these rules, please get in touch so we can advise you.