You’ll already be aware that mortgage interest relief is being progressively restricted to basic rate tax credits. This will only affect those that are higher or additional rate tax payers.
From April next year some other changes will be applied to some tax reliefs that might affect you in certain circumstances particularly if you are renting out a property that you have previously lived in.
The second major change is the inheriting of historical use. Where you used to be able to transfer to a spouse and start afresh perhaps benefiting from private residence relief, from April the historical use will passed on upon transfer which may restrict the private residence relief. Worth some consideration before the end of the tax year.
Rental Property Tax changes
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You’ll already be aware that mortgage interest relief is being progressively restricted to basic rate tax credits. This will only affect those that are higher or additional rate tax payers.
From April next year some other changes will be applied to some tax reliefs that might affect you in certain circumstances particularly if you are renting out a property that you have previously lived in.
The second major change is the inheriting of historical use. Where you used to be able to transfer to a spouse and start afresh perhaps benefiting from private residence relief, from April the historical use will passed on upon transfer which may restrict the private residence relief. Worth some consideration before the end of the tax year.
This entry was posted in News and Comments, Personal Taxes.