2016 saw a number of Government and economy led changes which affect the ultimate financial position for existing and would-be landlords.

So, what can we expect in 2017? The implications of the new tax rules to our landlords are complicated and as always, Landlords have a question about tax, Primove inhouse tax expert says :

“When the government announced restrictions to the mortgage interest relief claimed against rental income for income tax, we thought the principle was quite simple with just a minor complication of phasing the change over four years.

Now that the detailed rules are known, the position is more complex. The first phase of the new rules applies to the tax year starting in April 2017 and will have been fully implemented by the start of the tax year 2020/21. The mechanics in each of the years will be to calculate the rental profit and then deduct the fully allowable mortgage interest appropriate for that year (2017/18 deduct 75%, 2018/19 deduct 50%, 2019/20 deduct 25%). That results in a property profit which is put into the tax payer’s computation with other income to arrive at the tax payable. Then a deduction is made at 20% of the remaining allowable finance costs and it is this figure that introduces a new level of complexity because it is calculated at 20% based on the lower of:

• the finance costs not already deducted

• property profits

• adjusted total income (exceeding tax free personal allowance)

In most circumstances the first figure will be relevant but not in all cases, particularly for those who are 40% or 45% tax payers with a high ratio of borrowing to capital value and perhaps substantial repairs to deduct in a particular year. However, if the deduction is restricted, then any unclaimed finance costs may be carried forward to the next year, but the consequences of incurring high repair bills and not being able to recover the full tax relief on mortgage interest will already have been suffered.”

Other challenges we face as property investors are finding a deal with a healthy yield, changes to the Stamp Duty rules, the apparent announcement that agents will no longer be permitted to charge fees to tenants, changes to the tax relief around furnished rental properties, and the list goes on.

Never has it been so important to make the right choice of Letting Agent and Primove is the only lettings agent in Dorset who fair prices and expert knowledge will help Landlord. Our Clients have access to professional independent advice from experts in the industry about the above issue 24/7. We also provide clear advice on the following recent legislation:

• Right to Rent in the UK

• The need for a Legionella Risk Assessment

• Requirements for smoke and CO detectors

• Changes to Section 8 and 21 notices

• Reporting repairs with date recording

Is it harder to find a property which makes a good long term investment? Yes, but we work closely with our clients to ensure their choice leads to a smooth tenancy with long term opportunities. Landlords we at Primove believe if you speak to us we will make 2017 a great year to grow your income and your portfolio. Remember Primove is setup for landlords by landlords. Our fair fees reflect this but wants makes us better than any other agent in Dorset is not fair fees but our knowledge , great customer service we can guarantee if you don’t make more income, have better service we will manage your property for life for FREE !

Call Primove letting agents on 01202 800606 to talk about your next step. “Property is my passion and my advice is free”.