Property investors and landlords in Northern Ireland are being urged to act now to minimise the effects of new tax rules on buy-to-let homes due to come into force next year.
The warning comes from accountancy firm RSM who remind that buy-to-let landlords are already set to be hit with new costs from this April when a controversial extra 3 per cent stamp duty charge will be introduced.
From April 2017, landlords will be taxed on rental income before mortgage interest payments are deducted and before gaining a tax credit for the interest. However, the tax credit will be gradually reduced down to the basic rate of tax, currently 20 per cent, by 2020.
RSM is warning that when interest rates start to go up, the loss of 100 per cent of tax relief on what is the biggest cost for many landlords, means that many could actually end up paying tax on a loss.
Investor confidence in the UK and Northern Ireland buy-to-let sector may already be flagging, RSM said. According to the results of a survey by the National Landlords Association, the tax changes could lead to at least half a million properties coming on to the housing market in the next year.
Through its targeted LifeCycle programme, RSM has arranged a specialist seminar in Belfast to discuss the implications of the changes.
The seminar takes place on March 8 at RSM’s Belfast offices at No. 1 Lanyon Quay.
For more information, contact Clare Galloway, RSM on 02890 234343 or email
clare.galloway@rsmni.uk.
