Tax issues for buy to let landlords

The tax burden on buy to let landlords has increased significantly from removal of interest relief to higher capital gains tax. Tim Palmer CTA ATT, senior partner, Palmer Consultancy Partnership, explains the key issues to consider

A few years ago, a raft of tax changes really increased the tax liabilities of individual landlords who rented out residential property.

The capital gains tax (CGT) payable was increased when the landlord sells a residential property (8% higher). A stamp duty land tax surcharge of 3% was also introduced on acquisition of such a property. Higher rate income tax relief for buy to let loan interest has now been removed. These were big tax changes which have hit personal landlords hard.