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<p>The original estimate that 1 in 5 landlords would be affected by the decision to
restrict finance cost relief to the basic rate of tax was a forecast based on limited
information. The latest estimate of 1 in 10 is based upon received self-assessment
tax returns for the tax year 2017-18, the first year after the restriction was brought
into force. The statistic refers to individual UK landlords of residential property
who completed the main self-assessment property return. It does not include corporate
landlords, members of partnerships with property income, landlords of property abroad,
landlords who completed the SA200 short self-assessment return, or owners of Furnished
Holiday Lettings.</p><p>For tax year 2017-18, of all individuals that had declared
property income via their self-assessment tax return, around 11 per cent, or approximately
1 in 10, paid more income tax as a result of the decision to restrict tax relief on
mortgage interest to the basic rate of income tax.</p>
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