Helping you stay compliant in 2020
If you're a buy-to-let landlord or property investor, there are many pieces of legislation and regulations you need to be aware of, in order for your properties to remain legally compliant.
There are several upcoming regulatory changes, and we thought it would be helpful to summarize these for you in this handy e-guide.
1.Minimum Energy Efficiency Standards
You will most likely be aware of the minimum energy efficiency standards (MEES) which state that, from April 2018, all new tenancy agreements and renewals must include an EPC Rating
of 'E' or above.
From April 2020 this will be extended to cover all current tenancies - so all your tenanted properties must meet this minimum energy efficiency standard before then.
There is a good chance that this will be raised to a 'D' or above in 2022-23, so it is worth ensuring that your property's EPC rating is a 'D' or above now, if possible.
2. Tax Relief Rules
In 2017-18 claimable tax relief was reduced to 75%, and from 2020-21 this will be reduced to zero. Instead, from April onwards, landlords will receive a 20% tax credit on their mortgage interest payments and will have to declare the rental income they previously used for mortgage interest payments.
3. Electrical Installation Checks
In 2020 it is likely that mandatory five-year electrical installation checks on all private rented properties. First announced in January 2018, with a two-year transitional period of
4. Changes to Private Residence Relief
Relevant tax which is changing from April 2020 is the Capital Gains Tax. Currently, landlords are able to claim Private Residence Relief for the time they resided in the rental property, plus 18 months after moving out. This will be reduced by 9 months to a 9-month period after moving out.
If you have any concerned about your legal compliance as a landlord or to find out about potential investments in Kentish Town.
Please contact Mr. Abdul Kayum (MARLA, MNAEA) at 020 7482 1150
We're here to answer any questions you may have.