Hi Guys any idea whats the percentage of tax you
pay back for letting your property.
this will be long term let
Cheers.
Chat Forum
Whats The Cost Of Letting Your Property
-
Posted 7 months ago #
-
Its included in your income tax allowance and rate. You will have to submit a tax return. What you get in rent
is offset by mortgage interest payments, insurance, council tax, repairs and improvements so you will only be taxed on the actual profit you made in the year.
Mine is a long term investment and I do not take anything out. Any money made stays in the 'pot' for repairs, upgrades and to guard against any periods I don't have any rental coming in.
I hope that helps.Posted 7 months ago # -
Thanks for the info Stabilizers
That makes things more easier
Do you know what percentage IE 20 % or 40 % you are taxed on profit made?Posted 7 months ago # -
Do you know what percentage IE 20 % or 40 % you are taxed on profit made?
Re-read what stabilizer said...
Posted 7 months ago # -
Yes BR But all tax's are based on percentage are they not ?
IE VAT 20%Posted 7 months ago # -
Do you pay 20 or 40 on your job pay? Rental is additional income, therefore the same rate....
DrP
Posted 7 months ago # -
I do what stabilizers does.
And the rate you pay depends on your income - are you a basic rate or higher rate tax payer?
Posted 7 months ago # -
DrP is right. Profit on renting a property is essentially taxed as unearned income, not business rates or corp tax. Hence it will attract the highest rate of tax you are on. If you are on 50% rate, that's what any additional income will be.
Posted 7 months ago #
Reply
You must log in to post.
