KB-IVG Property FOCUS www.latesthomes.co.uk First rung on the property ladder From April 2017...


LANDLORDS WILL GRADUALLY no longer be able to deduct mortgage interest or finance costs against rental income. Any rental profit will then be taxed, and landlords may then claim a reduction in tax owed, at the value of their mortgage interest, profits or income* and finance costs multiplied by 20%. The act's full name is Section 24 of the Finance (no. 2) Act 2015. Wait, what's Section 24? What does that mean?


Finance costs will no longer be taken into account to work out taxable property profits. Many residential landlords with finance costs will be affected, and may pay more tax. The Headlines The changes will...


IT HAS PROBABLY NEVER BEEN more difficult for first time buyers in the Kingsbridge area to buy property, yet with enough determination, and sometimes a little help from the Bank of Mum and Dad some couples are still able to get their feet firmly on the property ladder.


An option available to some is shared ownership with a housing association. A scheme enabling buyers to own perhaps 50% of a home and pay rent for the remaining portion.


This is usually only available to purchasers who have lived in Devon for a minimum of three years and not for second home owners or investors. Although there are hoops to jump through, the advantage of paying half the deposit of that required for a full purchase can make all the difference. Jean Goodman Ltd is currently marketing shared ownership properties for as little as £58,000.


For those determined and able to purchase a whole property there are still a few entry level homes in the area which represent great value. We are now marketing a ground floor apartment with a parking space right in the centre of Kingsbridge for just £99,000. This would make a comfortable and convenient first home or for only £114,000 we have a light and airy, and quite spacious one bedroom apartment which had recently been decorated and is ready to go. One rung up the price ladder and we have a delightful and roomy two bedroomed bungalow in a village location with a great kitchen and bathroom and a parking space for just £179,000


For details of any of our properties please call Jean Goodman on 01548 587422 or look for more information on our website www.jeangood manestates.co.uk for details of this and all other available properties.


1. affect you if you let residential properties as an individual, or in a partnership or trust 2. change how you receive tax relief for interest and other finance costs


3. be introduced over 4 years from April 2017 Who will be affected?


All Residential Landlords with Finance Costs: 1. UK resident individuals that let residential properties here in the UK or overseas 2. non-UK resident individuals that let residential properties in the UK


3. individuals who let residential properties in a partnership


4. trustees or beneficiaries of trusts liable for Income Tax on profits from letting properties What finance costs are included? 1. Mortgages


2. Including loans to buy furnishings 3. Overdrafts


How long do you have?


The changes will come into effect from April 2017. But, don't panic. The changes will be gradually implemented over the next 4 years... aHow will Section 24 be phased in?? How this affects you, in numbers.


Let's say that you pay 40pc income tax. Your Buy To Let earns £20,000 a year and the interest-only mortgage costs £13,000. Currently: Tax is due on the profit. You pay tax on £7,000, meaning £2,800 for HMRC and £4,200 for you. From 2020: Tax is due on your full rental income of £20,000, less a tax credit equivalent to basic-rate tax on the interest. You pay 40pc tax on £20,000 (£8,000), less the 20pc credit (20pc of £13,000 = £2,600). HMRC gets £5,400 and you get £1,600.** Your tax bill has gone up by 93%.†


†http://www.telegraph.co.uk/investing/buy-to-l Extract from Property Tribes, Steve Bolton, Chris Cooper. Overdrafts


Loans - including loans to buy furnishings Mortgages


Friday, March 17, 2017 45


Visit our website for instant access to more photo and property particular


Stokenham £535,000


A spacious detached versatile house in popular location, 21' Lounge, 32' Conservatory, 21' Kitchen/diner, Master bedroom with ensuite, 4 further bedrooms, generous private garden, oil CH, PVCu DG


Thurlestone £349,750


Delightful bungalow, Outstanding sea views, Lounge with views to Burgh Island, Kitchen, 3 bedrooms, 2 Shower rooms, Level garden with decking. Garage, parking, Modern Electric Heating, PVCu DG


West Charleton £325,000 An immaculate bungalow with panoramic Estuary and


rural views, 20' Lounge/diner, Kitchen, 2 Double bedrooms, Garage, Parking, Pretty terraced gardens


Nr Kingsbridge £210,000


A delightfully cottage style maisonette, in the idyllic location. Oen plan living room/kitchen 2 double bedrooms, bathroom/wc, oil fired CH, private south facing courtyard, allocated parking.


Malborough £177,000


Very attractive refurbished bungalow with superb rural views, Excellent fitted kitchen, Lounge/diner, Garden with decking area and ample seating area, PVCu double glazing, parking, Gas CH


Malborough OIEO £170,000 Modern semi detached bungalow on level site, Lounge, Kitchen, 2


Double bedrooms, Shower room/wc, Kitchen/Breakfast room, Gas central heating, PVCu double glazing, Parking and enclosed garden


West Charleton SOLD SIMILAR PROPERTY URGENTLY REQUIRED


PLEASE CALL FOR A VALUATION 01548 856685 Looking to sell or rent your property in the Kingsbridge area? Get in touch today!


LAND TO RENT (FORD) Approximately 20 acres to rent for Agricultural/Equestrian


use, Two barns and stream running through. Available as one plot for £600 or two separate 10 acre plots at £300 each.


107 Fore Street, Kingsbridge • www.kingsbridge-estate-agents.com • 01548 856685


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