Richlist Posted March 20, 2017 Report Share Posted March 20, 2017 WARNING....for all of you who are not aware. The new Section 24 Tax rules come into force on April 6th. Here is an example of how it will affect you: Currently if you have £1000 of rental income and £1000 of mortgage interest then your profit is zero with no tax to pay. After April if you have £1000 of rental income you cannot offset the mortgage interest payments so your profit is £1000. You have a 20% allowance to offset against profit resulting in a profit of £800.....subject to 20% tax (or 40% if you are a higher rate tax payer). Tax bill will be £160 (or £320). Substitute your own income & mortgage interest payments to find out how much MORE tax you will be paying. Link to comment Share on other sites More sharing options...
Mortitia Posted March 20, 2017 Report Share Posted March 20, 2017 Thanks Richlist. Very timely as am just re financing my 2 BTLs. Very low interest rates given by Nat West - will it last? Link to comment Share on other sites More sharing options...
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