Section 24 “Landlord Tax” – Expert Insights on Phase 2
With the second phase of Section 24 of the Finance (No. 2) Act 2015 now in motion, the buy-to-let sector is bracing itself for yet another shock to the system. First in line for punishment are the heavily geared sole-trader landlords operating within higher or additional taxpaying thresholds. Then there are those unwittingly being pushed into the high tax bracket due to their inability to deduct a further 25% of mortgage interest costs. Although the 20% mortgage cost credit may attenuate some of the damage, these situations are likely to worsen in the coming years as the Section 24 screws are tightened. With the Chancellor’s priorities clearly elsewhere, most of the sector has now come to terms with the fact that any chances of top-down reform are slim – at least for the foreseeable future. As a result, over the... [Read More]