# Landlord Tax Changes Predicted to Increase UK Rent
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-03-31
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: April Tax Relief Changes: Brits Unaware, Property Preferred
Meta Description: Discover the latest tax relief changes affecting landlords in the UK. Learn why property investment is becoming more popular over ISAs and stocks.
URL: https://financedigest.com/landlord-tax-changes-predicted-to-increase-uk-renthtml

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- **_85% of Brits Unaware of April’s Tax Relief Changes_**
- **_Just Under Half (45%) would invest in property over ISAs and stocks_**
- **_Over Half (51%) Claim There is a Lack of Affordable Housing_**

From April this year tax relief rules are changing; landlords will only able to [claim tax](https://www.financedigest.com/lets-get-fiscal-how-to-understand-rd-tax-claim-eligibility.html "Let’s get fiscal – How to understand R&D Tax Claim Eligibility") relief on up to 20% of their interest payments, compared to up to 45% they can currently claim, and some are predicting landlords will pass these costs on to their tenants(i).

The majority of Brits (85%) are unaware of the tax changes and if given the choice, nearly half would choose to invest in property (45%) over Individual Savings Accounts (10%), gold (9%) and even [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") and shares (8%).  A third of Brits [live in rented](https://www.financedigest.com/redefining-renting-tipi-launches-the-best-way-to-live-in-london.html "REDEFINING RENTING: TIPI LAUNCHES ‘THE BEST WAY TO LIVE IN LONDON’") properties (ii) and over half already claim UK housing is unaffordable (51%). [Prices are only predicted to rise](https://www.financedigest.com/oil-prices-rise-as-weaker-dollar-offsets-china-covid-19-concerns.html "Oil prices rise as weaker dollar offsets China COVID-19 concerns") with these changes to taxation laws.

Experts suggest that high-rate [tax payers will be most affected by this tax change](https://www.financedigest.com/rd-tax-important-exemptions-and-upcoming-changes-for-the-it-software-industry.html "R&D Tax: Important Exemptions and Upcoming Changes for the IT & Software Industry"). Despite these new regulations hurting landlord profits, the vast majority of prospective investors (93%) still aspire to put their [money into property within the UK rather than looking to invest](https://www.financedigest.com/8-best-passive-investing-ideas-which-can-help-you-make-money-in-2022.html "8 Best Passive Investing Ideas Which Can Help You Make Money In 2022") abroad.

Ray Boulger, mortgage market guru, gives tips for maximum profit for prospective and current landlords:

_“Now is a good time for landlords to seek specialist advice as there is not a one-size-fits-all solution.”_

_“The new way to calculate income may push lower [rate](https://www.financedigest.com/factbox-the-uks-top-tax-rate-what-is-it-and-why-does-it-matter.html "Factbox-The UK’s top tax rate – what is it and why does it matter?") tax payers into the 40% tax bracket. There will be a substantial effect on landlords who receive child benefits – especially those who have more than one child – and for those who will find themselves in the 45% tax bracket.”_

_“For new purchases setting up as a limited company is one option, as properties held in a limited company structure still qualify for [tax deductible](https://www.financedigest.com/common-tax-deductions-and-credits.html "Common Tax Deductions and Credits") mortgage interest rates.”_

_“However, the impact of Capital Gains Tax and Stamp Duty Land Tax will often mean it is not worth switching properties already owned to a limited company structure”_

Brits need to become better informed on the [regulations and taxation laws so that current and future](https://www.financedigest.com/the-future-of-payments-flexibility-regulation-and-bespoke-models.html "The Future of Payments: Flexibility, Regulation, and Bespoke Models") landlords can look into new options to own property more efficiently. Education on these matters will ensure a less drastic change in [housing prices](https://www.financedigest.com/uk-house-prices-show-unexpected-strength-in-october-nationwide.html "UK house prices show unexpected strength in October: Nationwide") as landlords manage their properties in the most cost effective ways.


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