Section 24 was introduced in April 2017 and will phase in gradually over the next 4 years.
The introduction of section 24 means that landlords will no longer be able to claim mortgage interest along with any other property finance as tax deductible.
From April 2021, if you have a mortgage on your buy-to-let property, you will start to pay tax on those costs as well as your profit.
So what are my options you ask…
One of the more popular options is to set up a limited company. As a company you will be entitled to continue to claim for such expenses and you will only have the corporation tax to pay. However you would need to bare in mind that you may get caught with capital gains tax. Our advise would be to speak to your accountant and or an experienced mortgage broker.
The good news is there are a multiple options available. See below for further information.