Timeline Of Increasing Tax Cost

Tax costs on Buy to Let properties owned by individuals will increase as follows:

1 April 2016 – 3% increase in SDLT (and LBTT) costs on second residential properties

6 April 2016 – Wear & Tear Allowances abolished

6 April 2017 – tax relief on mortgage interest for buy to let properties restricted for 40% – 45% taxpayers

6 April 2018 – tax due on rental properties to be reported quarterly via Digital Tax Accounts

6 April 2019 – capital gains tax on disposals of buy to let properties to be paid within 30 days of disposal

6 April 2020 – tax relief on mortgage interest for buy to let properties restricted to 20%

In this section