More on BTLs

Further to our earlier note, we’ve had an observation from Philip Nickson, FCA, one of our readers, which we’d like to share.

Philip draws attention to the fact that the arithmetic effect of replacing a tax deduction for interest in computing BTL rental income with a basic rate tax credit is to increase “top line” income. Most people will have realised that this potentially affects exposure to higher rates of tax and the availability of personal allowances: Philip adds that it will also apparently affect the “adjusted net income” computation used for assessing the scandalously badly-drafted “High Income Child Benefit Charge”.

In effect, for HICBC purposes, relief for affected interest will not simply be restricted but withdrawn altogether, and it will become very easy for a landlord to lose Child Benefit despite being in receipt of what any sensible person would consider to be a modest amount of income.

We can sense a wide consensus of opinion building against this proposal: perhaps it’s not quite a done deal yet.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


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