Taxation of property
Becoming a landlord
Becoming a landlord is an attractive proposition for anyone who can raise a deposit, thanks to a prolonged period of low borrowing costs and generally rising property values. Whilst interest rates have finally, if slowly, started to rise, it is not surprising it is such an appealing option. There has also been a perceived lack of good alternatives, with low savings rates and restrictions on the amount that can be saved into a pension.
Buying to let is the usual way of becoming a landlord. Of course, you may have been lucky enough to inherit rental property or be in the position to purchase property outright. But if you are thinking of becoming a landlord it is essential to understand the tax implications.
Recent tax changes, tighter lending rules and last November’s bank base rate increase have had a negative impact on the buy-to-let market. This means that anyone thinking of becoming a landlord in future will need to carefully consider the pros and cons, especially when it comes to tax.
Buying a property
While finding the right property in the right area at the right price will be at the forefront of your mind, you should not forget the tax implications.