Announcement Landlords can deduct 100% of interest paid for tax purposes

Discussion in 'Budget 2019' started by Brendan Burgess, Oct 9, 2018 at 1:26 PM.

  1. Bronte

    Bronte Frequent Poster

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    Precisely.
     
  2. landlord

    landlord Frequent Poster

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    Considering a large percentage of landlords currently have HAP tenants, this change is almost worthless.
    Just a reminder....Landlords who house HAP tenants (for min 3 years) are currently allowed to offset 100% of mortgage interest against rental income.
    At the time this was the only incentive for me in considering HAP tenants. With all the administrative hassle, cost and effort of bringing the property up to “inspection standard”, getting paid in areas rather than advance etc...why would a landlord now choose a HAP tenant over a working professional. There is now no taxable advantage.
    Of course legally you can’t discriminate, however it’s the landlords choice as to whether he shows his property to perspective tenants who do not mention a work reference!!!
     
  3. Bronte

    Bronte Frequent Poster

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    You also need a double deposit landlord - due to the rent being paid in arrears. That's what I did.
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Agreed.

    If my tenants hit the road, I’ll be looking for three months’ rent as a deposit.
     
  5. landlord

    landlord Frequent Poster

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    Agreed.
    I managed to get a double deposit on a couple of rental properties that started out on HAP.
     
  6. Itchy

    Itchy Frequent Poster

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    What kind of returns make residential letting viable and does this measure increase the likelihood that there will be more residential investment or could it temper rent increases? Even marginally?
     
  7. landlord

    landlord Frequent Poster

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    So just to be sure to be sure is this correct ....

    Mortgage interest relief on rental properties ....
    Tax year 2017 (filed in 2018) 80%

    Tax year 2018 (filed in 2019) 85%

    Tax year 2019 (filed in 2020) 100% (after the recent budget announcement)

    For HAP tenants don’t forget to include and offset your lost interest after the three-year period.