LEICESTER LANDLORDS who are in the top income tax brackets face cuts with respect to TAX RELIEF on interest payments from mortgaged properties.
In a nutshell, if you are a LEICESTER LANDLORD who is in the higher income tax bracket of 40pc and 45pc, you are currently able to claim tax relief of up to 45pc. New legislation means that top rate LEICESTER TAX PAYERS can only claim up to 20pc tax relief on mortgage interest payments.
"Gradually phased out"
George Osborne has advised that the measure will be phased out "gradually" (commencing from 2017) and it is seen as a big blow to LEICESTER LANDLORDS who have wisely saved and invested their money into property. It seems as though ENTREPRENEURIAL SAVVY LEICESTER LANDLORDS who like to DIVERSIFY their earnings are being punished unfairly.
In my opinion this will only increase LEICESTER RENTAL asking prices which will affect LEICESTER FIRST TIME BUYERS thus defeating the purpose of the objective in helping these individuals saving for their first home!
This is as good as a time than ever to get in touch with FIRST 4 LETTINGS for FREE LEICESTER PROPERTY PORTFOLIO HEALTH CHECKS.
Mayur Sachdev | BA (Hons) | MNAEA | 0116 2706000 | www.first4lettings.co.uk | 163 Clarendon Park Road, Leicester, LE2 3AJ
Written by Mayur Sachdev
