The National government plans to completely reverse Labour’s interest deductibility tax law by April 2025. Until then, starting from April 1, 2024, property investors will be able to claim 80% of their interest expenses. This adjustment translates to reduced tax payments and increased profits for property investors.
In such a dynamic period, it’s natural to seek clarity on navigating these changes. Zest Accountants, our mission is to empower you with comprehensive knowledge.
Quick Facts:
- Starting from April 1 2024, property investors can claim 80% of their interest expenses, which will increase to 100% by April 1, 2025.
- This tax alteration will lead to decreased tax obligations and enhanced profitability for property investors.
- New builds will no longer hold a tax advantage over existing properties.
If you have any more questions on this and how this will impact you, please reach out today!