Buy-to-let property
With extra stamp duty land tax on the purchase of additional
residential properties and the new restriction on relief for
finance costs, landlords need to take action to minimise the impact
of these changes.
Extra stamp duty
Since 1 April 2016, anyone buying a second or subsequent UK
residential property has been subject to a 3% stamp duty land tax
(SDLT) surcharge. This can add substantial cost to a buy-to-let
property purchase, as shown in the following example.
Restriction on finance costs
As a residential landlord, you're currently able to claim
various costs of financing your buy-to-let property as an expense
against rental income. This includes interest on servicing debt
used to fund the rental business and any incidental costs of
obtaining or repaying finance. Income tax relief is available at
your marginal rate of 20%, 40% or 45%. In some cases, this can
produce a rental loss for the tax year, which can be carried
forward and
