New Tax Regime - Mortgage Relief

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    New Tax Regime - Mortgage Relief

    Could anyone give me a rough idea on what tax I will be liable for?

    Rental income is only income, apart from small pension of £5k pa.

    Annual rental income £65,000, est repairs, insurances and management fees £20,000, Annual mortgage interest £29,000.

    Many thanks
    MAPTON

    #2
    Total income £70k
    Less allowable costs, £50k.
    No tax on 11k, 20% on the next £32k, 40% on the remaining 7k.
    So £9.2k tax.
    Deduct 20% of the interest paid, £5.8k, leaving £3.4 tax to pay.

    Back of a fag packet version.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thank you for that. It looks like I haven't hardly been affected. Phew!

      Edit - actually, I don't think I've been affected at all?

      Comment


        #4
        Have you forgotten your State Pension income or are you not at the stage of entitlement, furthermore do you have interest from savings etc. There is a good calculator on the RLA web site to help along with other similar calculators if you google property rental tax calculator.

        Comment


          #5
          Do you mean for this tax year, last tax year or future years when the Tory discrimination against landlords comes in?

          Are you/have you been claiming 10% wear 'n tear (no longer from this tax year).

          Worth your buying a book on property tax. Not just income tax, there are at least 10 taxes a landlord may pay.
          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


            #6
            Originally posted by loanarranger View Post
            Have you forgotten your State Pension income or are you not at the stage of entitlement, furthermore do you have interest from savings etc. There is a good calculator on the RLA web site to help along with other similar calculators if you google property rental tax calculator.
            Quite a while to go before state pension.

            Thanks, I will have a look at the RLA calculator.

            Comment


              #7
              You youngsters have a lot to look forward to !!
              Do try the RLA calculator it is quite good.

              Comment


                #8
                Originally posted by MAPTON View Post
                Thank you for that. It looks like I haven't hardly been affected. Phew!

                Edit - actually, I don't think I've been affected at all?
                If Mr Osbourne honours his pledge to increase the higher rate threshold to £50k it will be neutral for a whole lot of people who were going to be affected.

                Probably Brexit dependent.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment

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