Tax Strategy for Low Interest Rates
Discussions held recently at the Bank of England, state that It looks very much like interest rates will not rise but will be reduced, as part of their strategy to stabilise the economy. Property Investors need to consider how this will impact on their plans to pay less tax in future.
Those on long-cherished tracker mortgages may not yet quite believe their good fortune. Other landlords may simply be relieved that the impending restriction of tax relief on interest for residential mortgages may not cost quite so much, simply because the interest itself may soon fall.
Landlords could get to keep most of the real-terms reduction in interest costs. This could lead to a saving of almost £800 per £1,000 of interest.