I'm 43 and a single parent. I have four buy-to-let properties, and me and my children currently live with my parents. What will be the best way forward for me when the new tax changes that will come into force, stopping you offsetting mortgage interest against your rental income? My accountant said that once the new rule is 100% by 2021 then this will put me in a higher tax band. What can I do to avoid this from happening? One of the houses I rent out was my main residence for 16 years but I have changed the mortgage from a residential to a buy-to-let and recently remortgaged. Can I move back into my main residence with a buy-to-let mortgage and will that help by bringing my tax bill down as I really can't afford to lose my child tax credit (CTC) as I have huge mortgage bills to pay on the buy-to-lets each month. I have a part-time job earnings of £5,000 a year too. What is the best way forward to leave the properties for my children and pay less tax? All properties are in my sole name only. Rental of two properties are £1,450 per calendar month per month; one fetches £1,500 and the last one £1,250 per month - these are gross figures. My mortgage liabilities per month consumes most of the rental incomes put together. 

When the new rules are fully phased in, your taxable income will rise considerably, it will be in the region of (12 * (£1,450 + £1,500 + £1,250)) + £5,000 = £50,400 + £5,000 = £55,400. This will affect your CTC and will detrimentally make a difference to the high income child benefit charge. In your circumstances, it may be necessary to seriously consider selling your properties and redeeming your mortgages. Alternatively, if your mortgage lenders will allow the transfer of your mortgages into a limited company, consider the possibility of incorporating your rental business.