Publication date: April 2018 - Plain English guide with dozens of examples and tax planning tips.
Many landlords will see their tax bills increase significantly as the tax relief on buy-to-let mortgages is reduced further.
The way the change has been designed also means that many landlords who are currently basic-rate taxpayers will end up paying tax at 40% and some landlords will face other tax stings, including losing their child benefit and income tax personal allowance, as well as paying tax at the 45% additional rate.
In some cases the result will be a significant drop in income (50% in one of the examples).
This guide explains how the new rules operate and what you can do to beat the tax increase, including:
Transferring properties to your spouse/partner
Using a company
Selling property
Reducing your buy-to-let mortgages
Using alternative investment structures
Increasing or postponing tax deductible expenses
Bringing forward finance costs
Taking bigger dividends now (if you have another company business)
Becoming non-resident
Making pension contributions