Any income you made on property investment in the tax year 2018/2019 must be declared by the end of this month – and make sure you remember to factor in Section 24.
Every self-employed person in the UK must complete a self-assessment tax form through HMRC to ensure they are making the correct contributions. For buy-to-let landlords and property investors, even if property is just a sideline to your main employment, the same steps must be taken.
For accidental or new buy-to-let landlords, there is plenty of information on the government’s website on how to complete your self-assessment tax return.
However, even for well-accustomed property investors, it is important to be aware of changes to the process.
Section 24 mortgage interest tax relief
One of the biggest changes for landlords is the reduction in the amount of mortgage interest tax relief that can be claimed, which has been the subject of many discussions since the change was announced in 2015.
For the April 2019 tax year, the amount that can be claimed is reduced to 25% of mortgage interest payments. While the changes may not affect the bottom lines of basic rate tax payers, those paying the higher rate could see a reduction in profits when taking mortgage payments into account – although this will of course depend on the level of borrowing of each individual.
Fill in your self-assessment tax return here.
