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Tax matters
 tax on rent |
 14.2.2009, 0:35
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#1
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 Senior  Group: User Posts: 57 Joined: 14.2.2009 Member No.: 9  |
My lords, ladies and gentlemen, do you have to pay tax on rental income and at what level?
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16.2.2009, 0:40
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#2
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 User Group: User Posts: 28 Joined: 4.2.2009 Member No.: 6 |
QUOTE (harry stoughchrat @ 14.2.2009, 3:35)  My lords, ladies and gentlemen, do you have to pay tax on rental income and at what level? Of course. You will have to pay an income tax on your rental income and capital gains tax at the time of sale, but it doesn't look in today's climate many of us will be able to make any profit from sale. Also you can deduct your mortgage interest from your profit, as well as repairs and decorating. Please note that you can't deduct full mortgage payment if your mortgage is on repayment, only interest part is allowed. |
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4.3.2009, 13:26
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#3
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New member Group: User Posts: 6 Joined: 2.3.2009 Member No.: 33 |
Rental income is usually taxed at 22% or sometimes even 40%, because it is often regarded in a similar way to salary.
Landlords though can keep back costs from the taxable part of their rental income. These costs might involve the interest plot of their Buy To Let mortgage repayments same as maintenance costs on the property. There is also a 10% type of allowance in case you let property on a furnished origin as contradictory to an unfurnished origin. |
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4.3.2009, 19:39
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#4
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New member Group: User Posts: 5 Joined: 27.2.2009 Member No.: 19 |
Well, taxes are at a level, where landlords can not make a large profit on their rental income. You probably know, that this is the case because rental income is customarily adequate to pay the mortgage, and plus a little extra for taxes on property, repairs and insurance.
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5.3.2009, 0:36
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#5
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New member Group: User Posts: 5 Joined: 4.3.2009 Member No.: 51 |
QUOTE (Sudden Earl @ 4.3.2009, 13:26) There is also a 10% type of allowance in case you let property on a furnished origin as contradictory to an unfurnished origin. I was wondering if there is such a possibility in buy to let mortgages. It's good to know there is. So, that basically means that if I will be letting a property with furniture, I'll be getting a 10% allowance... At least somehow rental income might be useful. This is great! |
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22.3.2009, 17:18
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#6
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Senior Group: User Posts: 57 Joined: 14.2.2009 Member No.: 9 |
Much obliged to all you honourable members for your replies! You just made think of something else I would like to know and hope that you would be as helpful. But that's another topic...
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2.4.2009, 18:49
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#7
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Senior Group: User Posts: 36 Joined: 2.3.2009 Member No.: 32 |
Hey Harry, while forum surfing, noticed that you are moving abroad and just wanted to make you aware that a non-uk resident landlord tax may also be deducted from your rental income. If you have agentc managing your property, they should be in a position to deal with this, but it's worth checking out what's what.
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4.6.2009, 18:25
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#8
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Senior Group: User Posts: 57 Joined: 14.2.2009 Member No.: 9 |
Much obliged, dear Tenant39! My agent mentioned that too, they seem to be on the ball with pretty much everything! Buty i still prefer to check few things out for myself (IMG:style_emoticons/default/wink.gif)
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| Lo-Fi Version | Time is now: 11.2.2012, 6:49 |