UK Landlord Forum / Life

Hi
Can somebody please explain the new rules as copied below.  As I see it currently for example: if you bring in a rent of £600 and your mortgage is £200 you pay tax on £400 (obviously less other expenses) at either 20, 40 or 45% tax accordingly to your income.  How will it work as below please?

In 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction
In 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reduction
In 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reduction
From 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction

I guess any of us could rewrite what you've written, but that's it in a nutshell...

1. Do you pay 40% tax. Y see below.. N forget about it.

2. You earn enough to get an accountant to explain it to you.