UK Landlord Forum / Life

Hi, I have tried and struggled to understand the implications of the Section 24 Tax changes about to be phased in. Reading through various reports and blogs it appears I'm not alone in being confused, but I finally discovered on the Government site a guide to "Tax Relief for Residential Landlords, a guide to how it's worked out":

https://www.gov.uk/guidance/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies

I found this helpful and think I have finally got my head around it, so hopefully it will be of use to others

To me its a very distorted process aimed at projecting landlords into the higher tax thresholds based on turnover rather than profit but I would be interested in the views of others.

Pete

It is a reasonably useful link.
I am surprised that "82% of landlords will not have to pay more tax" but then Im sure that is right 

The one more important example not provided is for the landlord on the margin where the additional tax burden outweighs the profit on the property in the first place and thereby avoids the biggest criticism of this new tax policy which is a tax on revenue and not on profit which is not equivalent to any other business in the UK.

It is good you are looking at it as over the next few years there will be a lot of landlords bailing out - which is by the way the real intent of the policy because evil landlords are driving up house prices whilst angelic local planners and government are only failing to have more housing stock built. 

I was much more put-out by the SDLT kicker. Which is also for second homes, not just property that will be let, of course.