"However, the introduction of Clause 24 by 2020 means that with no change in her turnover, her tax bill will be in the region of £48,000.
"This would leave her with a net income of just £12,000 which seems to the adviser concerned to be utterly unacceptable and ludicrous.”
More information
Plenty of mortgage networks are running roadshows and offering workshops to advisers in an effort to help them keep abreast of all the developments in the buy-to-let market, including Sesame Network and PMS Mortgage Club who are organising sessions in their 2017 adviser events programme.
Jane Benjamin, head of relationship management at Sesame Bankhall Group, suggests: “It is important that mortgage advisers take time to gain the required knowledge on the buy-to-let changes to ensure that best advice is given to their customers, including the possible referral to a tax expert prior to a customer committing to a buy-to-let mortgage.”
eleanor.duncan@ft.com
