Is buy-to-let a worthwhile investment in the UK?

In the United Kingdom, buy to let mortgages investment have traditionally been very lucrative. However, major tax increases in stamp duty and income tax have reduced the net income from buy-to-let assets in recent years. An extra 3% stamp duty tax is applied to the entire selling price of a second or subsequent property. As a result, buying a buy-to-let property is typically more costly. A ban on the deductibility of mortgage interest against rental income has also boosted the levy on rentals. This will result in a tax bill that reduces the net profit on rental income. For those with low levels of gearing who have already acquired their assets or who keep their buy-to-let mortgages portfolios in a Limited Company, returns might be higher.