Wednesday, Jul 08, 2015

Ouch - that will hurt!

Mail: Profits slashed for buy-to-let landlords in Budget crackdown on mortgage interest tax relief

Tax relief for landlords on mortgage interest payments to fall
Will only be able to claim the basic rate of tax - 20% rather than 45%
The relief is estimated to cost £6.3bn a year

Posted by hpwatcher @ 03:28 PM (5280 views)
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8 Comments

1. nubbers said...

This reminds me a bit of the end of dual mortgage interest relief in 1988, which I kind of suspect might have popped the last house price bubble.

Wednesday, July 8, 2015 04:14PM Report Comment
 

2. reticent said...

Quite a surprising budget in many ways.

I suspect that surprisingly few LLs pay higher rate tax though. I know tons of cash rich people who use BTL to supplement measly incomes.

Still, definitely a good thing.

Wednesday, July 8, 2015 04:29PM Report Comment
 

3. mombers said...

We already have by far the highest rents in Europe so how on earth are they expected to go higher?

Wednesday, July 8, 2015 05:07PM Report Comment
 

4. libertas said...

What we need next is US style tax relief on mortgage interest payments for owner occupiers, because a roof over one's head is required.

Wednesday, July 8, 2015 05:24PM Report Comment
 

5. Captain Tightwad said...

@4 Nonsense, that just inflates prices again. Anyway, if "a roof over one's head" is the criterion then why shouldn't tax relief apply to rent as well as mortgage payments?

Wednesday, July 8, 2015 06:12PM Report Comment
 

6. letthemfall said...

At last a small kickback against rentiers. Long long overdue.

libertas, thought you were against state interference.

Thursday, July 9, 2015 05:18PM Report Comment
 

7. mister ed said...

"libertas, thought you were against state interference"

He is. Except when it benefits him

Thursday, July 9, 2015 06:01PM Report Comment
 

8. tenyearstogetmymoneyback said...

libertas said...

"What we need next is US style tax relief on mortgage interest payments for owner occupiers, because a roof over one's head is required."

Or an old fashioned UK style scheme called MIRAS.

Thursday, July 9, 2015 11:18PM Report Comment
 

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