tax help

  • Filter
  • Time
  • Show
Clear All
new posts

    tax help

    unable to sell my property so i am thinking about renting it out. can anyone work out how much tax i would have to pay please.
    rental income = 450
    interest only mortgage = 180
    house value 85000
    house is in joint names. income 22000 and 28000
    i understand things are tax deductible like repairs but for now just class them as zero.

    Briefly :

    Only the net profit for the Tax Year (6 April to 5 April) is taxable. Net profit is Income less allowable expenses. Your share is 50% and will be taxable at your highest rate of tax.


      You would also be able to claim 10 per cent wear and tear if letting furnished and there are plenty of other things to offset against the tax, such as buildings insurance, mileage for visiting the property - viewings, inspections, maintenance issues.

      I wouldn't have thought your tax bill at the end of each year would amount to a great deal.

      Make sure you inform the HMRC as they will sting you with late penalties and fines.


        It worries me that you can not work that out yourselt. However £324 each is the answer. Regards Peter


          the maths was not the problem peter i just wasn't sure how it worked if it were in joint names but from your figures we obviously pay 10% each.
          thanks everyone


            From the figures given in your first post,

            Originally posted by October4 View Post
            house is in joint names. income 22000 and 28000.
            You would pay 20% each. The rental income is added to your earned income.


              Each of the joint owners would have to declare their share of the rental profit in their annual tax return.

              Jt Owner Share of Rental Income = 450 x 50% x 12 months = 2700

              Jt Owner Share of loan interest expenses = 180 x 50% x 12 months = 1080

              Rental Profit =2700 - 1080 = 1620

              Estimated Tax on 1620 at 20% = 324 ( to pay by each joint owner )


                that makes perfect sense thank you. when i said 10% i just meant 10% each of the total profit or 20% each if you have already divided the profit 50/50.

                next thing would be tax deductible things like home insurance(200 pound) is this all tax deductible or just the vat on it. eg £200 or £40


                  Buildings insurance is a revenue deduction as are many other costs. I suggest you get a book on the subject and read up. Regards Peter


                    Originally posted by TaxationPete View Post
                    Buildings insurance is a revenue deduction as are many other costs. I suggest you get a book on the subject and read up. Regards Peter
                    I took that advice from another post and bought the tax café book, it covers everything you might need to know !!


                    Latest Activity


                    • Advice
                      by jhoggard

                      I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
                      20-01-2022, 14:25 PM
                    • Reply to Advice
                      by theartfullodger
                      Depends to a great degree on tax regulations over the coming years. We only know what the rules are today, not what they'll be in future e.g. when you retire

                      I expect chancellors to cut back on the advantages of people owning property through companies (well, wouldn't you if you were chancellor)...
                      22-01-2022, 13:06 PM
                    • Reply to Advice
                      by Gordon999
                      1. No. You have not sold the property yet

                      2. 19% on profit by company.

                      3. Seek advice from accountant.
                      22-01-2022, 09:36 AM
                    • haring inherited property
                      by halfax
                      i am inheriting a property and would like to place half in my grandsons name.
                      as anyone done similar?...
                      19-01-2022, 18:12 PM
                    • Reply to haring inherited property
                      by halfax
                      thanks for help to everyone who replied, great forum
                      21-01-2022, 18:55 PM
                    • Reply to Looking for tax / financial advice for a BTL /holiday let long-held portfolio
                      by ifallelsefails
                      I watched a webinar from Landlord studio and this man Tony Gimple was featured in it. Have a look at his Linkedin profile:
                      He has a website whereby he consults exactly to your situation:
                      21-01-2022, 17:13 PM
                    • Reply to Recovering CGT on sale of property
                      by ifallelsefails
                      Having read what Gordon999 posted, it sounds just like what you can get via Crowdcube. Most of the businesses seeking funding on Crowdcube are eligible on the EIS scheme and you get shares in these fledgling businesses. I was only interested in Crowdcube because a number of businesses that I know were...
                      21-01-2022, 17:05 PM
                    • Expense claim - Name and address in the receipt
                      by geeksy

                      I need to claim an expense (£1500) for the bathroom and attic renovation work done in the property I let. I have two receipts for the same purchase, one originally issued and the second subsequently issued with additional two items.

                      One of these has my address on it, not...
                      20-01-2022, 11:39 AM
                    • Reply to Expense claim - Name and address in the receipt
                      by geeksy
                      Thank you, appreciate your reply.
                      21-01-2022, 13:21 PM
                    • Reply to Advice
                      by jpkeates
                      1 - Yes, the company will have to buy the property and you will be selling it. So there's a CGT "event" for you and the business will pay SDLT. You need to think about structure if you're going to borrow to grow, most lenders will want one company per property and director's personal guarantees....
                      20-01-2022, 16:02 PM