Changes in interest relief on your BTL Mortgages
I need some advice on how to deal with this announcement made by George Osborne. My circumstances are as follows:
- My husband and I own 5 properties which we let out.
- I am in the 20% tax bracket whilst he is in 40%. I am currently part time so before property income I only earn £23.5k.
- We currently own the properties 50:50 split.
- Our profits from the properties are around £1730 per month give or take a couple of hundred for repairs every couple of months.
- There is room for movement in the rents charged as these haven't been increased for nearly 2 years now.
What I would like to know is how my husband and I should deal with the announcement of interest on mortgages not being tax deductible? Should we increase rents to cover some of this? Would you convert to a Ltd company?
Thank you for your help with this.
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