Interest rise hits buy-to-let

The increase in interest rates will land yet more pain for buy-to-let landlords already facing significant changes to income tax relief on residential property. Individuals who own property personally and let it out will have already noticed the impact of the interest rate relief changes. As a reminder, for 2017/18 25% of interest costs will only get tax relief at the basic rate of 20% instead of at the higher or top rates of tax as in previous year.

By 2020/21 all interest costs will only get tax relief at basic rate.