Impact of the treatment of mortgage interest
Tax Planning and Financial

Jason Stuart
Jason Stuart
2 Thanks
12 Posts
1 year ago
0

The issue of mortgage interest has begun to impact on me considerably and in a number of ways. This is despite paying off large amounts of loan capital, over the last 5 years.
In 2020 Child Maintenance assessed my "gross income" at £18000 more than it was (which was more than 25% of the gross figure). This pushed me into a new and far more expensive payment category - I eventually got to a Tribunal and after a great deal of work, managed to get this overturned, albeit the ruling was specific for that year only.
Now interest rates are going up, it negates any reduction in the capital owed, in some cases quite considerably.
Last year, the inclusion of mortgage interest, took me over £50,000 gross income, which resulted in the loss of over £2000 child benefit (to be paid back with tax owed).
Like many, I'm considering selling property but the interest inclusion in income, will combine nicely with the reduction in capital gains personal allowance, to be a real whammy on capital gains liability.
I'm losing money on the back of money I've never had!
Anyone else experiencing this? Any knowledge on campaigns etc to address this grossly unfair targeting of landlords?

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