BTL mortgage tax relief latest rules...clarification please?

[philcray]

Hi

I am a bit confused and just wanted to make sure I am understanding the implications of the changes correctly.

In a nutshell, if you are a lower rate tax payer you will be no worse off. If you are a higher rate tax payer, you will effectively get the same relief as lower rate which means you will pay more tax on the rental income. This is being phased in over the next few years.

I also recall seeing statements implying that from 2021, mortgage tax relief will no longer be given to anyone?

Can anyone confirm this is correct, or clarify please?

[Foundthecure]

philcray said:

Hi

I am a bit confused and just wanted to make sure I am understanding the implications of the changes correctly.

In a nutshell, if you are a lower rate tax payer you will be no worse off. If you are a higher rate tax payer, you will effectively get the same relief as lower rate which means you will pay more tax on the rental income. This is being phased in over the next few years.

I also recall seeing statements implying that from 2021, mortgage tax relief will no longer be given to anyone?

Can anyone confirm this is correct, or clarify please?

If you are a lower rate tax payer you may now get pushed into higher rate as the interest relief is given as relief on your income tax bill, as opposed to relief on the profit.

[philcray]

Cheers, but this 2021 removal of all mtg tax relief, am I misunderstanding that?

[Foundthecure]

This might help

https://www.axa.co.uk/landlord-insurance/landlord-...