Latest News

How agents can help vulnerable customers during self-isolation

03 June 2020

Some customers who are self-isolating because they are higher risk may face other challenges apart from the direct risk and impact of the virus, Agents are a key part of local communities and can provide housing and support to those in need. Read More...

Pearson VUE test centres now open for Propertymark Qualifications exams in England

02 June 2020

Pearson VUE test centres have now opened with limited capacity allowing Propertymark Qualifications candidates to sit their exams. There are strict health and safety measures in place to ensure everyone's safety including reduced seat numbers so that social distancing can be followed. Read More...

Landlord Income Tax Relief fully phased in

Monday 06 April 2020

At the Summer Budget 2015, the then Chancellor George Osborne announced that the amount of Income Tax relief landlords can get on residential property finance costs will be restricted and gradually reduced from April 2017 until April 2020.

This means that from 6 April 2020 to 2021, 100 per cent of financing costs acquired by landlords will be given as a basic rate tax reduction. The final phase reduces the percentage of finance costs that can be deducted from rental income to 0 per cent and raises the percentage of basic rate tax reduction to 100 per cent.

As a result, from April, landlords will have to pay income tax on the full amount at the basic tax rate of 20 per cent. The rules affect UK residents who let residential properties in the UK or overseas as well as non-UK residents who let residential properties in the UK.

In his Budget speech, George Osborne said that the measures would, “create a more level playing field between those buying a home to let and those buying a home to live in”. Due to the changes, ARLA Propertymark has argued that the policy has pushed many landlords up a tax band, despite their income not increasing as tax is applied to turnover instead of profit.

Consequently, to cover these additional taxes many landlords have increased rents for new and existing tenancies. Many are also having to cut back on other expenses such as property maintenance. As the extra tax continues to mount up some landlords will sell up altogether and leave the sector. Over the long term this will impact on the value and quality of property available.