Tax Calculation

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    Tax Calculation

    Based on the below figures (no other income), am I correct in saying I should fall within the 20% tax bracket?

    If gross rental income is £58k,
    Maintenance/Repairs/Managing Agent = £16k
    Finance Interest = £17k

    Personal Tax Allowance £12500


    The gross income = £58K less £16K maintenance expense

    = £42K less loan interest 20% x £17K ( £3.4K)

    = £38.6K less £12.5K personal allowance

    = £26K @ 20% = £5.2K tax.


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