With buy-to-let landlords set to take a financial hit due to new tax rules being introduced in April 2020, tax consultants are advising landlords to sell any buy-to-let properties in their possession rather than wait until after April, according to a report in The Telegraph.
The income tax updates mean that despite uncertainty over Brexit and the current slowing of price growth, landlords may still be better off selling their properties now as tax relief savings will be scrapped in April. The result of this could be that landlords will be stuck with having to pay ‘tens of thousands of pounds’ in add-on duties when they eventually do sell due to capital gains tax protection being taken away.
Landlords have been hit hard in recent times due to a number of buy-to-let reforms that have cut deep into the purses of property owners. From the phasing out of tax breaks on mortgage interest payments to stricter regulation surrounding the eviction of tenants, only time will tell if there is still a profit to be made from buy-to-let properties or if landlords will need to go down a different route when planning a portfolio.
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