Insight and events
back to Updates
News
Kent Reliance for Intermediaries and EY team up to produce tax guide for intermediary broker partners
PR Team | 25.06.2020
Kent Reliance for Intermediaries and EY have worked together to produce a guide for property investors on the changes to the UK tax system. The guide entitled “Changes to UK tax relief on finance costs” has been compiled to inform its intermediary partners on the key considerations faced by their landlord clients and how they run their rental portfolios.
The guide focuses on the introduction of restrictions to income tax relief on 6th April 2017 which has significantly impacted landlords and the profitability of their portfolios.
Prior to April 2017, landlords had been able to deduct 100% of their home finance costs from their rental income to calculate the taxable rental profit. These restrictions have been gradually phased in and now, tax year (2020/21), there is no allowable deduction for finance costs at all.
The guide also outlines each tax that landlords need to be aware of prior to purchasing, transferring into a company structure or selling an investment property. This includes the capital gains tax liabilities of incorporating and the implications of buying or transferring property for stamp duty land tax and inheritance tax.
Adrian Moloney, Group Sales Director, OneSavings Bank comments: “Our broker partners have told us that even though COVID-19 has impacted the purchase or remortgage activity of their clients, professional landlords are not standing idle. Many are taking advantage of the current situation to re-evaluate their investments, in order to maximise opportunities when normality returns.
The latest edition of our “Changes to UK tax relief on finance costs” for buy to let owners, informs our broker partners of the key considerations facing their clients regarding the tax changes.
It is our hope that this guide will be a source of information for landlords and brokers about their portfolios but of course, this shouldn’t be seen as a substitute for professional advice. We always recommend to our broker partners that they advise clients to seek advice from an accountant or tax adviser to ensure they are fully aware of their portfolio’s tax liability.”
Martin Portnoy, Partner, EY comments: “Whether you hold an interest in UK property for personal use, as part of a property business or for investment purposes, the UK taxation landscape can be challenging. Professional advice is essential and can add great value”.
To view the guide, please follow this link.
- ENDS -
Contact:
Nimisha Cross
PR Manager
OSB Group
nimisha.cross@osb.co.uk
