Taxation of property

Bricks and mortar

Becoming a landlord has been an attractive proposition for anyone who could raise a deposit, thanks to a prolonged period of low borrowing costs and generally rising property values.

However, the outlook is currently uncertain, even though the housing market has now opened up again after the Covid-19 shutdown. Initial forecasts were for price falls of anything up to 13%, although the situation so far has not been as bad as feared. There is also the small matter of the UK leaving the EU at the end of the transition period in December. From April 2020, finance costs generally no longer qualify for relief at higher tax rates, with various adverse capital gains tax (CGT) changes having come in at the same time.