Lee Sharpe looks at practical issues arising from the ongoing restriction of relief for finance costs for residential property landlords subject to income tax.
The tax year 2020/21 promises to be an eventful one for property landlords – specifically those operating standard residential property, or ‘buy-to-let’ (BTL) portfolios.
The headline change will be the final phase or 25% tranche of the restriction or ‘add-back’ of finance costs for dwelling-related loans (under ITTOIA 2005, s 272A et seq). But other issues flow from that, as we shall see.
Increase in deemed profits
The restriction broadly applies to interest and any incidental or similar cost of financing a residential property business; furnished holiday accommodation (ITTOIA 2005, s 322) and
