The Big Landlord Tax Increase - Carl Bayley

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