By KATE McCANN, Whitehall Correspondent
BUY-TO-LET landlords will lose out after the Chancellor cut the amount of tax relief on rental income.
It means people who make money out of letting out a home they have bought will no longer get up to 45% back in tax relief — instead netting the basic rate of 20% by 2020.
George Osborne is also getting tough on the so-called wear and tear allowance to make sure landlords can only claim money back if they actually replace furnishings.
The Chancellor said he wants to create a “level playing field”, adding: “Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot.
“And the better-off the landlord, the more tax relief they get.
“So we will act — but we will act in a proportionate and gradual way, because I know that many hardworking people who’ve saved and invested in property depend on the rental income they get.”
He also announced tax relief for people who rent out a room in their home will be increased - in good news for people with lodgers or who use AirBnB.
It will increase from £4,250 a year to £7,500 — the first rise for 18 years.
Courtesy of The Sun