First Complete and Pink are urging brokers to raise awareness about the impact the impending changes in mortgage interest tax relief will have on landlords in their region.
From April the government will begin to phase out the higher rate tax relief over a period of four years, meaning that buy-to-let landlords will no longer be able to claim 45% tax relief on their monthly interest payments – only the basic rate of 20%.
Toni Smith (pictured), sales operations director at First Complete and Pink, said: “Brokers have a vital role to play in flagging the impact of the tax changes to clients and to point them in the right direction of a qualified accountant.
Landlords turn to commercial buy-to-let to avoid tax changes
“It is equally important that brokers avoid giving further detailed commentary or debate around the topic of tax treatment of buy-to-let portfolios as this could be constructed as advice and relied on by the client.
“There are challenging times ahead for landlords and they will need all the help and support they can get. Mortgage brokers will be a key point of contact as new complexities continue to emerge for landlords.”
First Complete and Pink hosted seven specialist buy-to-let workshops across the UK throughout February giving brokers the opportunity to speak with experts about how the changes will impact them and their customers.
The workshops included an overview of the new tax regime, discussed a variety of specialist solutions, HMOs and limited companies, and lending into retirement.
Smith added: “The specialist buy-to-let workshops are one of many events that First Complete and Pink run to support its advisers.
“Events like these demonstrate our commitment to continually offering a market leading network proposition to brokers in an evolving marketplace.”