What tax rate applies to me for rental income

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    What tax rate applies to me for rental income

    Hi

    I am new to residential lettings. I have problem working out which tax rate applies to me for rental income.

    I am fulltime employed and pays 40% tax on my salary. If I start to getting rental income, shall the rental income be charge at 40% tax as well?

    Or does the rental income counts separately from my employment income?

    Many thanks

    Regards

    #2
    Rental profits (after eg mortgage interest etc etc ..) are added to your overall income so in your case 40% (or higher if greatly blessed...).

    Welcome to LLZ. Have you done a tax return yet?? Have you done SA returns?? Which tax year did you 1st get rental income in??
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Many thanks for your reply. I haven't really started being an landlord yet. I have recently spotted a 1 bed flat in Manchester in a very bargain price. However, if I am subjected to 40% tax, the net profit after tax will be very limited.

      If I have both myself and my wife's name on the property, will I get lower tax rate as my wife is not paying 40% tax. Her tax rate is the standard rate (22% ?).

      Comment


        #4
        See thread:

        http://www.landlordzone.co.uk/forums...343-Tax-advice

        Comment

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