If I have 3 BTLs and one makes profit and the other two a loss, whats the total tax?

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    If I have 3 BTLs and one makes profit and the other two a loss, whats the total tax?

    Hi all

    Imagine this scenario:

    BTL #1: £4000 profit in a tax year
    BTL #2: £2000 loss
    BTL #3: £2000 loss

    When the tax is calculated, is each property treated separately, or are they treated as one 'business'?

    So in the above example, is the total profit zero, so no tax is due, or are each of the £2k profit properties charged 40% tax (in my case), and the other one then carries the loss over into the next year?


    #2
    You submit one 2016-2017 tax return, for your annual rental income and expenses arising from all 3 properties

    Your Annual Rental income = R(1) + R(2) + R(3) = R(Total )is entered in the "Property Income" box.

    Your Annual Rental expenses + E(1) + E(2) + E(3) = E( Total ) is entered in the "Expense" box

    Your Rental Profit /Loss = 4000 (1) - 2000(2) -2000(3) = 0 is entered in the "Profit/loss" box.


    So Nil tax due from rental properties.

    Comment


      #3
      if you actually downloaded the form and looked at it (and/or read the notes) you'd know the answer to this. If you're not up to that, I'd strongly suggest getting an accountant to do it for you which is a tax-deductable expense anyway.

      Comment


        #4
        Yes , download the SA105 Tax Form and SA105 Notes for 2016-2017 and do a trial exercise .

        Comment


          #5
          I've filled in the forms before, just couldn't remember, and you nice people are so helpful

          Comment

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