In our post on why buy-to-let incomes are dropping, we saw how the staged removal of mortgage interest relief has led to landlords paying more tax.

The example we quoted in that post was of a higher-rate taxpaying landlord who each month receives £1,150 in rent and pays £700 in mortgage interest payments. Before 2017, they would have had a tax bill of £2,160 leaving them a post-tax rental income of £3,240. From April 2020, an increase in tax to £3,840 would leave them with only £1,560 after tax.

Depending on your circumstances, you may be able to cut your tax bill significantly if you are married.

Join The Conversation
Cyber Essentials Plus certification
Green Mark certification
Sign up for our Newsletter