Here’s a reminder of two tax changes that will directly affect landlords THIS YEAR - and that’s before any new government announcements in the months to come.
Monday 31st January is the deadline for landlords’ online self-assessment tax return for the 2020-2021 tax year. This will be the first on which the new mortgage interest tax relief credit applies.
The controversial credit, which has been phased in over the past four years, means landlords can now only offset 20 per cent of their mortgage interest payments against tax.
One slightly more comforting change is that an announcement about Capital Gains Tax made in the Budget some months ago is now in effect.
This changes the deadlines for reporting and paying CGT on the profits of additional properties. Landlords now have 60 days, rather than 30, to report and pay CGT bill when selling a buy to let unit. Chancellor Rishi Sunak has already made it clear that he will not be implementing much-feared fundamental changes to CGT rates.