The Chancellor presented his Autumn Budget on 22 November 2017 whose main theme is to get Britain building again by abolishing stamp duty for first time buyers and pledging to…
A SIMPLE GUIDE TO THE BUDGET 2017 This is a basic guide, prepared by ACCA’s Technical Advisory team, for members and their colleagues or clients. It is an introduction…
Who’s affected? If you work as a contractor or freelancer and use one of the umbrella companies on the market using loan schemes as a way of income extraction strategy…
Tax is charged on income received from rental properties. This is calculated as rent less allowable deductions such as:
- Rental insurance
- Repairs and maintenance costs
- Professional fees
- Mortgage Interest
As announced in the budget, the Chancellor has introduced restrictions on tax relief on mortgage interest with effect from April 2017. Interest relief restriction will be introduced gradually until it reaches the basic rate (20%) which is expected to be in 2020.
Individuals that receive rental income on residential property in the UK or elsewhere and incur finance costs (such as mortgage interest). So if you are lucky enough not to have any mortgage interest cost on your property or you own property through a company or your property meets all the criteria to be classed as a furnished holiday letting, this has no effect on you.