The squeeze on private landlords is now in its third year
The 6th April will see
- tax relief on mortgage interest will now only be at the basic rate of tax
- Capital gains tax will have to be paid within 30 days of completion of the sale. This is currently paid by self assessment with any tax on a sale in say June having to be paid at the end of the second January following.
Landlords who live in their property will get resident relief for the final 9 months they own the property. Previously it was 18 months.
These changes will have a cashflow impact on landlords who may need help with planning how they manage their rental properties
They may also need help when dealing with HMRC in settling any tax liabilities
In addition to the cashflow and planning impact inflicted by the Chancellor, the current outbreak of coronavirus may mean that tenants on sick pay will be unable to pay their rent which may mean that mortgages on properties won’t be paid.
While the major lenders have indicated that due to the coronavirus outbreak, they will help individuals pay their mortgages, they are less clear on the help available to landlords.
We would expect most lenders to consider any requests for help from landlords to be considered on the facts of their situation.
At Harrisons Business Rescue, we are able to help
As well as our extensive knowledge, we work with a range of professionals including tax advisors, property agents etc who can work with you to find a solution to your problems