Optimise Accountants -

How will new tax bracket rules affect property investors?

November 12, 2016

advice on income tax changes for property investors from Optimise Accountants

My team of property tax accountant experts at Optimise Accountants came across an interesting industry article this week, and I’ve decided to highlight it further for our property investment blog readers here.

The news article – which can be read in full here – examines how new tax bracket rules could potentially affect property investors when they come into force in April 2017

How to minimise property tax

Whilst the National Landlords Association (NLA) has estimated that 40,000 property investors and buy-to-let property landlords in the UK could be pushed from the 20% tax bracket into the 40% tax bracket by the new rules in April, it’s worth remembering that these property tax changes will be introduced over a period of four years

The higher rate of income tax will fully impact on property investors in the UK from the tax year commencing 2020/21, when 100% of the rent property investors receive will be included when it comes to working out their tax liability.

Allowable costs against property income

Some of the discussed tax changes could, however, impact property investors already in the higher 40% tax bracket sooner, so it’s worth consulting a property tax expert if in doubt.

Some of the rules and regulations to impact property landlords have already been felt, such as the cutting of mortgage interest relief – this will be felt across the property investment market from April 2017, and I expect to see an impact in particular on the higher tax bracket property investors across the UK.

I discussed some of the potential property tax changes for 2017 from the Budget Announcement blog post I published  – read more about it here.

Tax changes for property investors

Interestingly, the higher tax bill for property investors from next year will still apply even if the profit landlords make on their property does not increase.

This is why establishing your tax liability position is so critical – and why as a property tax specialist, I can assist you further, along with my team of property tax specialists.

Whilst the new tax liability changes for property investors could appear to be another nail in the coffin for the property investment sector, I believe that with the right property tax accountancy advice, these imminent changes for 2017 and beyond need not prove disastrous for the profitability of any investors property portfolio in the UK.

Get in touch with me or my team of property tax accountants here if you’re unsure about your tax position.

Reduce tax liability on property investments

How to engage with us

If you want to understand how to implement this strategy or to discuss other finance and property tax questions, then please book some time with us using the below calendar.

Please use the redeem code “Article 33” to get 33% off your next consultation call.

If you are looking for a new accountant, then please book some time with us using the below calendar. Please note that this booking is to describe our services and will not be used to discuss your personal tax affairs.



Get your FREE ebook "Property Investors Guide"
Enter your information to recieve the eBook

First Name:*
Last Name:*
Lead Source:*
Email:*
Phone:*

Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk