Various reports have come out over the last few days stating that 440,000 landlords are going to be impacted by the new tax rules. This means that from April 2017 those landlords that are currently base rate tax payers will move into a higher tax band.

Putting this into perspective

We need to understand two key numbers, how many landlords are there in the UK and how many properties are owned outright. In terms of landlords it’s hard to get an exact figure but generally, a number between 1.5 and 2m would be safe to assume. In terms of landlords that own their properties outright again no exact numbers here but the assumption is at least half if not more.

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Based on those assumptions let’s say we then have 1.75m landlords of which half own their properties outright. That means just over 50% of those landlords will be financially impacted from April next year (assuming that most landlords are not in a company structure already). That number is closer to 60% if we assume 1.5m landlords.

That is quite a scary prospect and I would urge anyone that is a basic rate tax payer with even just one property today to get sound advise on what to do next.