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60_11_December_2017online

OLIVER JAQYES YOUR LOCAL PROPERTY EXPERTS TRIED, TESTED AND REGULATED FOR YOUR PEACE OF MIND I joined Oliver Jaques in 2001 after starting out my working life in the hospitality and catering industry. Seeking a change of direction, I could never have anticipated just how much my new career would enhance my life and how passionately I would feel about property and the enjoyment I would experience from dealing with both vendors and buyers, and from helping people to find their perfect home, to the often stressful but ultimately rewarding sales progressing. When I received promotion to Branch Manager in 2008 it truly was one of the pivotal moments of my working life. Over the past 17 years, Oliver Jaques and I have both come a long way, experiencing many changes, to not only the agency but more importantly our ever expanding local area. Since 2001 I have seen the massive development of areas including Rotherhithe, Canada Water and Greenwich, as well as most notably the Docklands, which has attracted a plethora of new professionals, families and investors drawn to the easily accessible transport links, nightlife and attractions such as the 02 arena and Olympic Park Stadium. With the further development of Surrey Quays and Canada Water, such as Greenland Place, Tavern Quay and The Quebec Quarter to name just a few, I look forward to the next 15 years being even more demanding and rewarding than the last. DPS /\ The Property Ombudsman myl depositS.co.uk / ....... Stephen Banks MARLA I Lettings Manage, arla I prapertymark Are you prepared for 2018? Not many landlords will be sad to see the back of 2017, but are you prepared for 2018? The amount of income tax relief landlords can get on residential property finance costs will be restricted to the basic rate of tax. The changes are likely to flip how many UK landlords receive relief for interest and other finance costs. Although the changes will be introduced over four years, April saw the first round of amendments. Currently, landlords can claim tax relief on mortgage interest payments. In other words, they can offset the cost of the mortgage interest from the rental income when they calculate their profits. If a landlord collects rental income of £70,000 a year but pays mortgage interest of £9,000, 'the profit' is the difference between the two, or £7,000. Landlords pay tax on their profits according to their income tax band. Using this example, a basic-rate taxpayer would pay 20% tax on £7,000. The tax bill for a 40% taxpayer would be £400, leaving £600, or £450 for a taxpayer at the 45% additional rate, leaving £550. However, the rules change the way that profit is calculated. Finance costs will no longer be taken into account to work out taxable property profits. Instead, mortgage interest tax relief will gradually be cut back to 20% between 2017 and 2020. So, a landlord with rental income of £10,000 who pays mortgage interest of £9,000 will in future have to pay tax on the full amount of £70,000, minus a 20% credit on the mortgage interest of £9,000. The tax bill for a higher rate taxpayer would therefore work out at £4,000 (40% of £70,000 profit) minus £1,800 (20% of £9,000 interest), which equals £2,200, up from £400 under the current tax regime. That's a large increase of £7,800. A landlord who pays 45% tax could expect a tax bill of £2,700, compared with £450. Although it sounds confusing, don't panic - the changes are being phased in and won't be fully in place until April 2020.


60_11_December_2017online
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