After a challenging year for residential landlords, recent improvements to the buy-to-let mortgage market and enhanced rental incomes represent welcome good news for investors seeking to expand their property portfolio or buy a second home.

In the three months to 31 May 2021, average interest rates for residential landlords had declined. A two-year fixed-rate buy-to-let mortgage fell 0.10 percentage points to 2.95%, while a five-year fixed dropped 0.11 percentage points to 3.30%. For higher loan-to-value (LTV) ratios, the drop was even more significant and as you would expect, it is vice versa for lower LTV. This may partly be down to increased competition.

This latest Active Practice Update provides an overview of the tax landscape and how it can be managed and includes:

  • Stamp Duty Land Tax Taper
  • Tax Liabilities on Rental Income
  • Capital Gains Tax Considerations

If you would like to discuss in more detail any of the issues raised with a member of our team, please call 01772 741200