The Chancellor,George Osborne, announced in The Budget that cuts are to be made in the amount of tax relief buy-to-let landlords can claim on mortgage interest payments.

The amount in which landlords can claim will be set at the basic rate of tax ( currently 20% ) by 2020 and introduced gradually from 6 April 2017.

In addition to this, the 10% wear and tear allowance will be abolished for furnished properties, and landlords will be entitled to deduct the actual cost of replacing furnishings instead.

At this moment in time property investors can claim tax relief on their monthly interest payments at the top level of tax they pay. According to George Osborne the move is aimed to create ‘level playing field ‘ between homeowners and investors