Landlords come clean on unpaid tax

Huge rise in the number of landlords admitting unpaid tax on rent - https://t.co/XXWz5Jmvpy #GoogleAlerts

— Property Hawk (@landlordnews) July 5, 2019

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Mortgage Interest Relief minefield

Changes to Mortgage Interest Relief have been a minefield for landlords, says Lisa Simon, Head of Residential Sales at Carter Jonas. #morgages #interestrelief #https://t.co/1Ph7uObJ31

— The Negotiator (@TheNeg) April 23, 2019

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Peers call for tax relief on rental home improvements

NEW: Peers call for tax relief for rental home improvements https://t.co/hNceKHE1xg

— RLA Landlord News (@RLA_News) April 4, 2019

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Landlords count the cost of tax measures

• 58% of landlords report an increase in their 2017-18 tax bill
• Tax increase of £3,039 on average
• One third of landlords point to higher than expected rise

Nearly six out of ten landlords (58%) saw an increase in their 2017-18 tax bill according to Paragon’s PRS Trends Report for Q1 2019 which tracks the opinion and experience of over 200 landlords across the UK.

Landlords with three or more properties were more likely to report an increase in their 2017-18 tax bill than those with smaller portfolios, with an average annual increase in tax of £3,039 for those reporting a rise.

While over 60% of landlords confirmed that the change in their 2017-18 tax bill was as expected, one third (33%) said it was either a little or a lot more than expected.

Almost half of landlords (49%) who reported a higher than expected increase said they would make changes to their portfolio as a result, with the most popular measures including selling property (24%), increasing rent (20%) and reducing borrowing (19%).

Mortgage interest tax relief for buy-to-let landlords is being phased out over a four-year period and replaced with a basic rate tax credit. In the 2017-18 tax year, landlords could deduct 75% of mortgage interest costs from rent. This was reduced to 50% in 2018-19. It will fall to 25% in 2019-20 and then to zero.

John Heron, Director of Mortgages at Paragon said: “These figures provide early insight into how the tax changes impacted landlords in the first year of implementation. The January tax deadline was the first real data point for measuring change and it’s clear that landlords are continuing to adapt their approach as the transition progresses.

“The fact that almost one quarter of landlords intend to respond by selling property is bad news for tenants, impacting supply to the sector, driving rental inflation and ultimately making it more difficult for those that rely on the UK’s Private Rented Sector for a home.”

View the full PRS Trends Q1 report.
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HMRC scam email advice

When we email you about your Annual Tax Summary, we will never include a link to sign into your account https://t.co/tTcgyjp7Oh pic.twitter.com/xncmosGC7r

— HM Revenue & Customs (@HMRCgovuk) March 11, 2019

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BTL tax hikes ‘excessive’ - Scottish landlords

Scottish Association of Landlords: Buy-to-let tax hikes ‘punitive and excessive’ https://t.co/ejiu9OPf2F pic.twitter.com/MnVGmYEpA4

— Mortgage Introducer (@MortgageChat) March 11, 2019

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What is a land value tax?

Why a land value tax is the "least-bad" tax https://t.co/zCu6RfH9tQ pic.twitter.com/JH3yhKgqbL

— MoneyWeek (@MoneyWeek) November 3, 2018

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Accidental landlords could be stung with more tax

Homeowners who struggle to sell their property and let it instead could be stung with more tax https://t.co/xwAKe1b6iW #Budget2018 pic.twitter.com/R0YZaWPFOA

— Myra Butterworth (@MyraButterworth) October 30, 2018

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BTL taxes have not pushed up rents

Landlords selling up in response to tax changes have made no difference to rents, new analysis by @genrentuk reveals - https://t.co/VOltBHApr3 #ukhousing pic.twitter.com/ORkirseDl2

— 24housing Magazine (@24housing) October 16, 2018

We've taken a look at the implications of the much-threatened exodus of landlords from the rental market. Good news: their homes don't simply disappear! https://t.co/hFFU9L1qvt

— Generation Rent (@genrentuk) October 16, 2018

Taxes on buy-to-let landlords have not pushed up rents, study says https://t.co/7W4jXPvCwK

— The Guardian (@guardian) October 16, 2018

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Tax reform needed to encourage longer tenancies

Budget 2018: We are calling for tax relief on rental income, which could increase each year a tenancy continues up to a maximum of five years if the tenancy is renewed. Read our budget submission in full here https://t.co/sBhKr3Wkli #budget2018

— RLA Landlord News (@RLA_News) October 5, 2018

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Most popular landlord tax questions

When is a repair a repair? Can I claim for mortgage fees? TEN most popular landlord tax questions, answered. https://t.co/q4NuY8LTbW #tax @Rita4Rent pic.twitter.com/sHbJ3xCUbU

— RLA Landlord News (@RLA_News) September 4, 2018

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BTL continues to fade thanks to tax changes

Buy-to-let continues to fade as tax changes throw up a barrier > client @jeremyleaf comments https://t.co/ZzaUByIlmy via @ThisIsMoney

— Melanie Bien (@melaniebien) July 17, 2018

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Reaction to IDS's BTL tax changes

IDS calls for review of BTL tax changes – reaction https://t.co/K94ycWX4Lk pic.twitter.com/kOY6QXRJ6X

— Mortgage Introducer (@MortgageChat) July 24, 2017

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IDS calls for S24 landlord tax u-turn

Iain Duncan Smith: The housing crisis demands a revolutionary new approach https://t.co/s6RYi9Jywf #property

— NALScheme (@NALScheme) July 18, 2017

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Two thirds of landlords are basic rate tax payers

Challenging the myth: two thirds of landlords pay basic rate tax https://t.co/fUmYAJINrw

— RLA Landlord News (@RLA_News) July 5, 2017

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Can a couple avoid tax on jointly owned rental?

Can a couple avoid paying tax on a jointly owned rental #property? https://t.co/Gw1EKS554O

— NorthwoodUK (@northwooduk) May 23, 2017

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Tax change - what options do landlords have?

Stick or Twist: What options do landlords have following the tax changes? https://t.co/mVxEq8CkKi pic.twitter.com/tuL3ooNXQw

— NLA (@nationalandlord) April 13, 2017

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Tax hike to affect half a million landlords

Landlord tax hike

The tax hike or raid instigated by the government changing the way they work out a landlords rental profit leading to massive tax rises for some landlords could affect up to 440,000 landlords according to claims by the National Landlords Association.

Proposed tax changes will push landlords into higher tax bracket

The changes resulting in the loss of mortgage interest tax relief which are to be staggered will no longer allow higher rate tax payers to offset all their mortgage interest charges against their rental income.  As a result over a fifth of landlords claim that they will be pushed into the higher tax band triggering a higher rate of tax and an increased tax bill for many landlords.  Some landlords have been investigating using a company structure to reduce their tax bill.  This works because a landlord operating through a company will continue to be able to offset their entire mortgage interest bill.  We have explored previously whether landlords should incorporate their rental business.

Law society of landlord tax change

The way that the government has brought in the legislative changes to the landlord tax system on income tax has been criticized by a number of organizations.  The law society has actually slammed the way the finance bill has been introduced.  Despite these criticisms it is very unlikely that the government will back down.  In fact Cherie Booth ( Blair )representing a group action by landlords recently lost their case challenging buy-to-let tax changes.

More tax info:

5 ways to slash your tax
Calculate your tax return with our free online property manager
Capital gains tax explained

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