Buy to Let, what can I claim against tax?
There are several allowable expenses that you can claim against tax when owning a Buy to Let property. These allowable expenses can include interest on your buy to let mortgage, council tax, property insurance, maintenance and property repairs, and legal and management fees
The 2015 Summer Budget has reduced the amount of tax relief that is available for interest on buy to let mortgages from April 2017.
Prior to April 2017, tax is payable on your net rental income after deducting allowable expenses including mortgage interest. This meant that landlords paying higher (40%) or additional (45%) rate tax could claim tax relief at their highest rate.
However, from April 2020 tax relief can only be reclaimed at the basic rate (20%), whatever rate of tax the landlord pays. The rules are being phased in over 4 years commencing April 2017.
Guide to Buy To Let Mortgages
- What is a commercial Buy to Let?
- What is Buy To Let?
- What is a Buy-to-Let mortgage?
- What are Typical fees for Buy to Let loans
- What types of property fall under Buy to Let?
- What is an Special Purpose Vehicle (SPV)?
- What is the stamp duty rate for a Buy To Let?
- What are the current Buy To Let Mortgage Rates?
- Buy to Let, what can I claim against tax?
- Ideal Buy To Let Deposits / Loan to Value (LTV)
- Why use a Broker for Buy To Let?
- What is the capital gains impact of Buy To Let?
- Are my Buy To Let profits taxable?
- How to maximise your Buy To let
- What deposit do you need for a Buy to Let?
Just to say a big thank you to you and all the others who have helped with this process – including the underwriters at Shawbrook who met me early this morning. We have completed on the purchase successfully! This would not have been possible without your intervention – so a big thank you.