Sorry to be repetitive, but myself and Liz (your other blog editor) are still finding landlords who have no idea of how recent tax changes might affect them. Particularly the changes on how tax relief on mortgage interest is gradually being removed. We have been raising the issue, both on the blog and at landlord forums since it was first announced but even some of the landlords we are in regular contact with seem to have let this pass them by.
The impact of the changes is potentially massive. Some landlords could have all their profit wiped out on buy-to-let properties. Meaning they decide to sell up and quit the market so that less rental accommodation is available for those who need it. Something that advice workers and social housing providers might need to be aware of as there could be a knock-on demand for their services.
If you are not already familiar with how you could be affected – please make it your priority to find out now. Firstly – for some of the basics about landlords and tax – if you are new to the whole subject are here gov.uk / landlords and tax. Then this page has some more detailed information about how the changes will actually work and how landlords will gradually start to lose tax relief on mortgage interest in a phased change over four years.
Most of the landlord advice websites cover this subject and if you google, you can also find some useful online calculators. It’s a complex subject so please get yourself informed before you get too nasty a surprise from the taxman.