stamp duty

Recent tax changes to rental property

Changes in allowances for rental properties  

Over the last few years the Chancellor has made some deep cuts into the benefits of a BTL landlords.


  1. 36 month rule reduced to 18 months effective since April 2015. Only allowable if landlord lived in the property.
  2. Capital Gains tax payable for overseas landlords on gains in the UK effective since April 2015
  3. 10% Wear & Tear allowance withdrawn for furnished properties effective from April 2016. You can only claim general wear and tear allowance based on the actual cost of any capital items.
  4. Interest relief to be capped at the basic rate for the taxpayer. Taper over 4 years from 2017
  5. Additional stamp duty payable on BTL of 3% on stamp duty rates. Plus lower threshold of £40K , when purchasing own home minimum threshold remains at £125K.


Only piece of good news, Rent a room allowance increased from £4,250 to £7,500 from April 2016.