S24 deduction of interest payment / Covid-19 Virus

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    S24 deduction of interest payment / Covid-19 Virus

    I am wondering if S24 tax changes are going to come and haunt landlords.

    Under the tax changes landlords can't deduct interest payments in full. Individual Landlords have been paying more tax, then is fair.

    You could end up with a situation where the tenant wont or can't pay the rent and you can't fully deduct interest payment as a genuine overhead.

    I know interest rates have gone down, but it does n't apply to those who have fixed rate mortgages or have a minimum floor.

    The Government is asking landlords to stand by tenants, which is fine, but they have n't done anything about the injustice of unfair taxation.

    I know in cases, tenants will do a runner, rather then re-pay any arrears. It seems unfair to pay taxes on non-existent income.

    I don't know if people have done calculations.

    I don't know why landlord's association did n't ask for this to be changed.

    The Government figured, the landlord could enjoy the uplift in property value, but I predict house prices will crash.

    I don't think that many landlords will pay any more tax, it'll catch some, but I'd have thought for the majority of landlords it's tax neutral.
    A small number of landlords will pay slightly more tax isn't much of a headline, though.

    At the time as s24 has been introduced, the personal allowance has increased by £1500 and the threshold for higher taxation has also increased - which for most people would probably more than compensate.

    How will landlords pay tax on non-existent income?

    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


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