Landlord Interest 2017/18: How to Protect Yourself from the Big Cut in Tax Relief

Publication date: June 2017 – Plain English guide with dozens of examples and tax planning tips.

Starting in April 2017, tax relief on buy-to-let mortgages is being reduced over a period of four years.

As a result many landlords will see their tax bills soar.

The way the change has been designed also means that many landlords who are currently basic-rate taxpayers will end up paying tax at 40% and 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