Watch our Managing Director, Paul Mahoney discuss the recent tax change with regards to buy-to-let mortgage interest.
Hi. I’m Paul Mahoney, the managing director at Nova Financial, and as many of you would know, we’re a property and finance advisory company. Today, I’m going to talk to you about the recent tax change with regards to mortgage interest and how it’s likely to affect the UK property market and landlords as a whole.
The essence of the change is that mortgage interest will no longer be tax-deductible. However, you do receive what’s called a tax credit at 20% of the mortgage interest, which means effectively, those who are on the lower tax bracket, which is anybody earning less that £50,000 as of April this year, will be unlikely to be affected by the change, unless their income were to go above that rate. For those that are earning more than that, there are strategies that can be utilized, for example, limited company structures, or by investing in a partner’s name who is on a lower income.
If you’d like to explore these strategies and how they relate specifically to you and may enable you to invest in a more tax-efficient way, please feel free to get touch.