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  1. #181
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    Quote Originally Posted by Triggaaar View Post
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    Firstly please note we're only talking about Buy To Let properties. Properties where you're paying tax on the rental income.

    Secondly, it's all change now anyway, as the government phase out the mortgage interest tax relief (up until Apr 17 you could deduct your mortgage interest from your revenue, but that's being phased out unless you've got it in a company).

    So if you have that tax relief, you don't need the ISA to beat the interest of your mortgage.
    The tax relief on a Buy to Let Mortgage is not being phased out.

    It is just being restricted to the basic rate of income tax of 20% as opposed to some Landlords who were getting relief at 40%. Even this reduction will not come fully into effect until April 2020.
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    • #182
      Members Herr Tubthumper's Avatar
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      Quote Originally Posted by cjd View Post
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      The tax relief on a Buy to Let Mortgage is not being phased out.

      It is just being restricted to the basic rate of income tax of 20% as opposed to some Landlords who were getting relief at 40%. Even this reduction will not come fully into effect until April 2020.
      By then Corbyn will be running the nation; he doesn’t like BTL landlords.
      "I will design a town in the image of your face. Round the wrinkles of your eyes my footsteps you can trace. We could promenade down infra-nasel depression. The streets of your hands will never feel a recession."
    • #183
      Members Uncle Spielberg's Avatar
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      Quote Originally Posted by Herr Tubthumper View Post
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      By then Corbyn will be running the nation; he doesn’t like BTL landlords.
      Nor do the Tories
      Spielberg is GOD.
    • #184
      Members Normski1989's Avatar
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      Quote Originally Posted by cjd View Post
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      The tax relief on a Buy to Let Mortgage is not being phased out.

      It is just being restricted to the basic rate of income tax of 20% as opposed to some Landlords who were getting relief at 40%. Even this reduction will not come fully into effect until April 2020.
      It also changes the way the calculation is done, so it might push people into the higher rates tax bracket but then only allow relief at the basic rate of 20%. Lots of people will get caught unaware.
      Took me years to realise that I spent my youth standing next to Steve Foster every week watching Sunday league football. Oops!
    • #185
      Mama said knock you out. LlcoolJ's Avatar
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      Quote Originally Posted by cjd View Post
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      The tax relief on a Buy to Let Mortgage is not being phased out.

      It is just being restricted to the basic rate of income tax of 20% as opposed to some Landlords who were getting relief at 40%. Even this reduction will not come fully into effect until April 2020.
      True. It's a bit more snide than that though with the way that you have to account for the gross rents as income when calculating if you do go into the 40% bracket. It will push many people who are currently basic rate taxpayers into the higher rate purely because of their rental property, and then they lose that part of the tax relief on the interest.

      As I've said before, it's clever stuff as on the face of it the policy is to tax unscrupulous BTL landlords more heavily and assist first time buyers by freeing up more property. In reality it just plays into the already incorporated hands of the big boys (and screws the middle earners as per usual) without doing anything material to change the housing market.
    • #186
      Mama said knock you out. LlcoolJ's Avatar
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      Quote Originally Posted by Uncle Spielberg View Post
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      Nor do the Tories
      Not the small ones. Big companies owning swathes of property, they're cool with that.
    • #187
      Members Herr Tubthumper's Avatar
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      Quote Originally Posted by Uncle Spielberg View Post
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      Nor do the Tories
      Good point.
      "I will design a town in the image of your face. Round the wrinkles of your eyes my footsteps you can trace. We could promenade down infra-nasel depression. The streets of your hands will never feel a recession."
    • #188
      Members Herr Tubthumper's Avatar
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      Quote Originally Posted by LlcoolJ View Post
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      Not the small ones. Big companies owning swathes of property, they're cool with that.
      Better point.
      "I will design a town in the image of your face. Round the wrinkles of your eyes my footsteps you can trace. We could promenade down infra-nasel depression. The streets of your hands will never feel a recession."
    • #189
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by LlcoolJ View Post
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      When you managed to get your second property (accidental landlord style) on a non BTL mortgage and it turned out that after the fixed rate finished it reverted to .75 above base rate so you don't want to switch it or rock the boat.
      I'll take that as a no.

      And if it's .75 over base, the last thing you want to be doing is paying it off
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    • #190
      Mama said knock you out. LlcoolJ's Avatar
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      Quote Originally Posted by Triggaaar View Post
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      I'll take that as a no.

      And if it's .75 over base, the last thing you want to be doing is paying it off
      What other option would you suggest in this hypothetical case then?

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