1. C HANGES TO TAX FOR LANDLORDS Mike Bygrave

2. C HANGES TO TAX FOR LANDLORDS “Short of attacking them with flame throwers or impaling them on stakes it is hard to know what else the banks and government can throw at landlords” The Daily Telegraph

3. B UYING Mortgage availability to be restricted Wider affordability tests Stress testing Portfolio landlords (4+) tougher still 5.5% interest rate test

4. B UYING New stamp duty threshold Example : £200,000 second home bought before April paid stamp duty of £1,500. (nothing on the first £125,000 and 2 per cent on the portion between £125,001 and £250,000.

5. S TAMP DUTY Now 3 per cent for the first £125,000 and 5 per cent instead of 2 per cent on the amount between £125,001 and £250,00. This gives a total bill of £7,500.

6. S TAMP DUTY

8. O PTIONS Buy in the name of other family members? Multiple companies? Splitting purchase price? Reflecting increased price in rent

9. T AX RELIEF Abolition of 10% wear and tear allowance for furnished holiday lets Restriction of loan interest tax relief to basic rate

10. L OAN INTEREST RELIEF From April 2017 25% of loan interest treated under new rules From April 2018 50% of loan interest treated under new rules From April 2019 75% of loan interest treated under new rules

11. L OAN INTEREST R ELIEF - E XAMPLE How much will the mortgage interest restriction cost me? If adding mortgage interest back onto your total income for the year leaves you under the threshold (currently normally £ 42 386) Nil If you are a higher rate taxpayer then the extra cost will be 20% * your annual mortgage interest

12. L OAN INTEREST RELIEF How will this work? Loan interest not shown in accounts Separate allowance given in Tax calculations

13. O PTIONS Purchase through a limited company Itemise all replacements Self finance Examine tax position

14. S ELLING Capital gains tax unchanged (rates have fallen for other capital gains from 18% and 28% to 10% and 20%)

15. C ONCLUSION More expensive to buy Less allowances to offset Higher rate tax payers face increases