Jack D
Jack D
Registered with Property118.com
10th July 2015
Total Posts
0
Total Comments
21
Registered with Property118.com
10th July 2015
Total Posts
0
Total Comments
21
16th July 2015, 11 years ago
This link has some examples how the changes will impact in a few different scenarios. I think most here now understand how the new calculation will be applied but thought it may be of interest to read. http://m.accountingweb.co.uk/article/osborne-s-reforms-send-property-spin/584698
Read More →Reply to comment left by Appalled Landlord at 14/07/2015 - 22:42
Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:42": Thanks Appalled Landlord, can see that now. Thanks for the clarification and apologies again if I caused any further confusion to anybody.
Read More →Reply to comment left by Appalled Landlord at 14/07/2015 - 22:15
Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:15": Page 59. He stated that the amount of interest that can be offset is limited to the rental profit amount (income - costs) in that case as that...
Read More →Reply to comment left by Appalled Landlord at 14/07/2015 - 22:00
Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:00": So Appalled Landlord would the example that Simon provided be incorrect? That only relief on 20k of the interest would be able to be used that tax year?
Read More →Reply to comment left by Appalled Landlord at 14/07/2015 - 21:01
Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 21:01": But as per Simon Lever example, only 33,500 of the 51,000 interest in Gary's figures could have the 20% relief applied and used that year, is that right?...
Read More →14th July 2015, 11 years ago
I just keep to this simple understanding on this, Income – Costs = Profit Tax Calculated on Profit Actual Tax Due = Tax Calculated - Relief on interest costs
Read More →Reply to comment left by Gary Mason at 14/07/2015 - 19:49
Reply to the comment left by "Gary Mason" at "14/07/2015 - 19:49": But Gary that 100k interest cost wouldn't be classed income though would it? If I have absolutely no income (no salary and no profits on my BTL) but...
Read More →14th July 2015, 11 years ago
Your profits increase as a result of the interest costs, as a deduction pre tax calculation, being removed. Your income doesn't increase by means of adding the interest amount to your profits. Right? Think the terms that people are using...
Read More →12th July 2015, 11 years ago
I did a calculation earlier today based on current 20% tax payer with their personal allowance being used for their earned income through salary. My calculation was that as result of the changes and becoming a 40% tax payer in...
Read More →Reply to comment left by Gary Mason at 12/07/2015 - 19:37
Reply to the comment left by "Gary Mason" at "12/07/2015 - 19:37": No need to provide figures for you to provide detailed example now Gary as understood now as to how you were looking at this. Thanks to some posts...
Read More →Reply to comment left by James dengel at 12/07/2015 - 14:56
Reply to the comment left by "James dengel" at "12/07/2015 - 14:56": Ahhh....got that methodology of thinking on this now, thanks to above explanation from James. Very helpful sir!
Read More →Reply to comment left by Gary Nock at 12/07/2015 - 14:10
Reply to the comment left by "Gary Nock" at "12/07/2015 - 14:10": As I have come to understand and to what I believe is correct, Today you reduce the £ value that tax is calculated on deducting interest costs (as...
Read More →Reply to comment left by Appalled Landlord at 12/07/2015 - 13:15
Reply to the comment left by "Appalled Landlord" at "12/07/2015 - 13:15": Appalled Landlord - The figures for old and new change in future years as the changes are implemented. Gary Mason - struggling to understand how interest would be...
Read More →Reply to comment left by Gary Mason at 11/07/2015 - 22:45
Reply to the comment left by "Gary Mason" at "11/07/2015 - 22:45": Sorry Gary, you've lost me on this. Something seems adrift with the numbers and methodology being used in the calcs. Maybe somebody else can make sense of it...
Read More →Reply to comment left by Gary Mason at 11/07/2015 - 22:33
Reply to the comment left by "Gary Mason" at "11/07/2015 - 22:33": Gary, if the 65k is interest what is the rental income amount? If you look back a few pages there is a good post linking to mortgages for...
Read More →Reply to comment left by Gary Mason at 11/07/2015 - 22:05
Reply to the comment left by "Gary Mason" at "11/07/2015 - 22:05": Just to be clear is the 65k interest or income?
Read More →Reply to comment left by Gary Mason at 11/07/2015 - 21:26
Reply to the comment left by "Gary Mason" at "11/07/2015 - 21:26": No, your fax relief (20%) would be applied to your interest (finance costs) and deducted from your tax due. You seem to be confusing income and interest here.
Read More →Reply to comment left by James Leavesden at 11/07/2015 - 11:05
Reply to the comment left by "James Leavesden" at "11/07/2015 - 11:05": Thanks for posting, this really helps and sets out the position. So as I had interpreted although they say this is neutral position for 20% tax payers today,...
Read More →Reply to comment left by Michelle O'Connor at 11/07/2015 - 10:33
Reply to the comment left by "Michelle O'Connor" at "11/07/2015 - 10:33": This was also the point I was making and still seems unclear, does the revised method of calculation result in 20% tax payers currently suddenly being deemed 40%....
Read More →Reply to comment left by Simon Dewsberry at 10/07/2015 - 23:46
Reply to the comment left by "Simon Dewsberry" at "10/07/2015 - 23:46": I posted previously but the post seems to have disappeared! My post was around fact that added to this scenario here, surely many landlords in the 20% tax...
Read More →Showing 20 of 21 comments