In 2015, the then Chancellor George Osborne announced major plans to restrict tax breaks for residential buy-to-let landlords which could see half of their profits wiped out.
Gradually phased in over 4 years from April 2017, the change means mortgage interest relief along with arrangement, booking and valuation fees will be restricted to the basic rate of tax of 20%. Relief will be given as a reduction in tax liability instead of a reduction to taxable rental income.