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Pay more tax on your Letting Income

27th May 2017

For individuals who let properties, finance costs such as mortgage interest paid, will no longer be a tax deductible expense in arriving at your property rental profit that is taxed. Instead, HMRC will give a tax reducer of 20% to reduce your tax bill by the amount of the relevant finance cost. The new rules are being phased in over this and the following 3 tax years. This means that not only will higher rate (40%) tax payers pay more tax, as they will now only get half of the...