Intire Lettings in Bristol and Bath gives tax relief warning to buy-to-let landlords

Leading letting agency for Bristol and Bath Intire Lettings has issued a tax relief warning for buy-to-let investment landlords this Summer.

Following a recent announcement by George Osborne that buy-to-let landlords will only be able to offset mortgage interest at the basic tax rate by 2020, this means that investment landlords could find their tax relief universally restricted to 20%.

The wealthiest property landlords currently get tax relief at 40% and 45%, but the chancellor will be changing this rule next year, restricting it to 20% for all landlords.

According to the Chancellor, to help buy-to-let landlords adjust the tax relief change will be phased in during a four-year-period with the current allowance being withdrawn in April 2017.

Atif Javid, Managing Director of Intire Lettings, said: “These changes will potentially hit buy-to-let investors in Bristol and Bath, in an industry that relies heavily on investors to provide a supply of property to the private rental sector in both cities.

Whilst many private landlords in Bristol and Bath will now look to increase rent to maintain their current rental yields in the face of these tax relief changes, others will look more closely at their tax planning provisions.

The changes from the Treasury will also introduce a more level playing field between first-time-buyers and landlords, whilst still keeping buy-to-let open as an attractive investment option for property landlords in Bristol and Bath.

Whichever route forward buy-to-let landlords in Bristol and bath choose to take, our expert letting agents in our Bristol and Bath offices are on hand to guide and advise each individual on the best way to maximise their rental incomes for 2015,” added Atif.

To find out more about how our letting agents in Bristol and Bath can help you, please get in touch here.