{"id":5025873,"date":"2019-09-23T09:15:10","date_gmt":"2019-09-23T08:15:10","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5025873"},"modified":"2019-09-23T09:15:10","modified_gmt":"2019-09-23T08:15:10","slug":"landlord-tax-relief-the-latest-on-section-24-for-individual-landlords-in-2019","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/news\/landlord-tax-relief-the-latest-on-section-24-for-individual-landlords-in-2019\/","title":{"rendered":"Landlord tax relief: the latest on Section 24 for individual landlords in 2019"},"content":{"rendered":"

Since April 2017, the amount of tax relief landlords can claim on finance costs has been reducing. Are you up to date on the changes?<\/strong><\/p>\n

In a bid to discourage competition between property investors and first-time buyers<\/a>, the government has made a number of changes to make the buy-to-let landscape slightly less attractive to landlords. One of these was the introduction of a 3% stamp duty<\/a> surcharge on additional properties, and another was the restriction of finance cost relief – known as Section 24.<\/p>\n

What tax relief can I claim on finance costs?<\/h4>\n

Before the changes came in, landlords had been able to deduct all their mortgage interest costs as well as other allowable finance costs from their tax bill.<\/p>\n

Under the new Section 24 rules, this tax relief is gradually being reduced to the basic rate of income tax (currently 20%), with relief being given as a reduction in tax liability rather than a reduction to taxable rental income. This means landlords will declare their rental income, pay income tax on the full amount, then claim back 20% of their mortgage interest costs as credit.<\/p>\n

The phasing in works as below:<\/p>\n