I’m not a tax person but I'm also interested in this idea but as people have already pointed out, residential property income is not deemed earned income so is not eligible for SIPP's so it's not much help for those...
Reply to the comment left by "Gary Nock" at "21/07/2015 - 15:04": If you were just on the threshold of paying 40% tax with your other income that's pretty much it. If you had no other income then there would...
Reply to the comment left by "Simon Lever" at "21/07/2015 - 13:27": Hi Yes, this was Megan's example and Syed who posted this mentioned about child benefit and she said she would pass this on the appropriate department. I would...
Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 12:34": Hi I was trying to show the the results in simple terms. Megan Shaw doesn't add the interest to the taxable amount, she just doesn't deduct it form...
Reply to the comment left by "syed shah" at "14/07/2015 - 12:48": Hi all I just wanted to reply to old post from Syed as it contains the working example from Megan Shaw from HMRC who's name was on the...
Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 10:18": Your total tax is (excluding some exceptions due to the small print). Actual profit from rental business + your finance interest + any other income. Now work out...
Reply to the comment left by "Kathy Evans" at "21/07/2015 - 09:19": Hi In simple terms (there are some exceptions) you'll be taxable on your actual profit plus the cost of finance and then you'll get the value of 20%...
Reply to the comment left by "Mark Shine" at "16/07/2015 - 21:00": Hi I can't take into account the loss of the wear and tear allowance as I don't know what other costs you'll incur once that goes so I've...
Reply to the comment left by "Appalled Landlord" at "16/07/2015 - 17:20": Hi, yes, I think that way of looking at it is more correct. I was thinking of myself on £0 other income and once interest rates go up...
Reply to the comment left by "syed shah" at "16/07/2015 - 13:47": Hi It's because there is way to calculate you tax relief based on three clauses. Of the three clauses it's the lowest clauses that gets chosen. In basic...
Reply to the comment left by "Mark Alexander" at "16/07/2015 - 14:39": Going back to the original point that it may be possible to move the property into a Ltd company and defer the CGT. In this particular case the...
Reply to the comment left by "Appalled Landlord" at "16/07/2015 - 10:43": Hi I too claim night fatigue. I won't bore you with the details but I basically copied the number incorrectly out of the spreadsheet in the second example....
Reply to the comment left by "Jason E" at "16/07/2015 - 00:09": Well, I had to try myself actually so I put your income in at 11K. Good news, computer says you now get the full 20% of £60K relief....
Reply to the comment left by "syed shah" at "15/07/2015 - 23:57": My spread sheet says that assuming no other income you paid zero tax under the old regime and £3400 under the new. This is a different figure from...
While we are sharing here is the reply that I got from Megan regarding the use of the word "profit" in the second clause of how your tax relief will be worked out (I thought/panicked they might mean actual profit...
Wasn't Osborne's comment that one in five landlords would be effected? Looking at it as it currently stands (regardless of how you do the calculation) it's hard to construct a scenario where any landlord won't be effected i.e. pay some...
Reply to the comment left by "Neil Robb" at "15/07/2015 - 10:27": Hi Yes, your comments place you in the first camp, no longer able to deduct finance costs from profits. If anyone can provide their understanding of the second...
Reply to the comment left by "Gary Mason" at "15/07/2015 - 09:50": Hi I see we differ on how we think the calculation are done (this isn't, for example, a maths error). As already stated one group believes that finance...
Reply to the comment left by "Simon Dewsberry" at "14/07/2015 - 23:57": I'd like to add a few things to this conversation. Firstly we are all working off limited information and the full facts hopefully will come out soon. We...
Reply to the comment left by "Jason E" at "13/07/2015 - 23:07": ... if this is correct then the actual numbers are Pre 2017 Actual Profit £50K, tax £9403, take home £40,597 Post 2021 Actual profit £50K, tax £28,643, take...
4th April 2018, 8 years ago
I’m not a tax person but I'm also interested in this idea but as people have already pointed out, residential property income is not deemed earned income so is not eligible for SIPP's so it's not much help for those...
Read More →Reply to comment left by Gary Nock at 21/07/2015 - 15:04
Reply to the comment left by "Gary Nock" at "21/07/2015 - 15:04": If you were just on the threshold of paying 40% tax with your other income that's pretty much it. If you had no other income then there would...
Read More →Reply to comment left by Simon Lever at 21/07/2015 - 13:27
Reply to the comment left by "Simon Lever" at "21/07/2015 - 13:27": Hi Yes, this was Megan's example and Syed who posted this mentioned about child benefit and she said she would pass this on the appropriate department. I would...
Read More →Reply to comment left by Melvin Edwards at 21/07/2015 - 12:34
Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 12:34": Hi I was trying to show the the results in simple terms. Megan Shaw doesn't add the interest to the taxable amount, she just doesn't deduct it form...
Read More →Reply to comment left by syed shah at 14/07/2015 - 12:48
Reply to the comment left by "syed shah" at "14/07/2015 - 12:48": Hi all I just wanted to reply to old post from Syed as it contains the working example from Megan Shaw from HMRC who's name was on the...
Read More →Reply to comment left by Melvin Edwards at 21/07/2015 - 10:18
Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 10:18": Your total tax is (excluding some exceptions due to the small print). Actual profit from rental business + your finance interest + any other income. Now work out...
Read More →Reply to comment left by Kathy Evans at 21/07/2015 - 09:19
Reply to the comment left by "Kathy Evans" at "21/07/2015 - 09:19": Hi In simple terms (there are some exceptions) you'll be taxable on your actual profit plus the cost of finance and then you'll get the value of 20%...
Read More →Reply to comment left by Mark Shine at 16/07/2015 - 21:00
Reply to the comment left by "Mark Shine" at "16/07/2015 - 21:00": Hi I can't take into account the loss of the wear and tear allowance as I don't know what other costs you'll incur once that goes so I've...
Read More →Reply to comment left by Appalled Landlord at 16/07/2015 - 17:20
Reply to the comment left by "Appalled Landlord" at "16/07/2015 - 17:20": Hi, yes, I think that way of looking at it is more correct. I was thinking of myself on £0 other income and once interest rates go up...
Read More →Reply to comment left by syed shah at 16/07/2015 - 13:47
Reply to the comment left by "syed shah" at "16/07/2015 - 13:47": Hi It's because there is way to calculate you tax relief based on three clauses. Of the three clauses it's the lowest clauses that gets chosen. In basic...
Read More →Reply to comment left by Mark Alexander at 16/07/2015 - 14:39
Reply to the comment left by "Mark Alexander" at "16/07/2015 - 14:39": Going back to the original point that it may be possible to move the property into a Ltd company and defer the CGT. In this particular case the...
Read More →Reply to comment left by Appalled Landlord at 16/07/2015 - 10:43
Reply to the comment left by "Appalled Landlord" at "16/07/2015 - 10:43": Hi I too claim night fatigue. I won't bore you with the details but I basically copied the number incorrectly out of the spreadsheet in the second example....
Read More →Reply to comment left by Jason E at 16/07/2015 - 00:09
Reply to the comment left by "Jason E" at "16/07/2015 - 00:09": Well, I had to try myself actually so I put your income in at 11K. Good news, computer says you now get the full 20% of £60K relief....
Read More →Reply to comment left by syed shah at 15/07/2015 - 23:57
Reply to the comment left by "syed shah" at "15/07/2015 - 23:57": My spread sheet says that assuming no other income you paid zero tax under the old regime and £3400 under the new. This is a different figure from...
Read More →15th July 2015, 11 years ago
While we are sharing here is the reply that I got from Megan regarding the use of the word "profit" in the second clause of how your tax relief will be worked out (I thought/panicked they might mean actual profit...
Read More →15th July 2015, 11 years ago
Wasn't Osborne's comment that one in five landlords would be effected? Looking at it as it currently stands (regardless of how you do the calculation) it's hard to construct a scenario where any landlord won't be effected i.e. pay some...
Read More →Reply to comment left by Neil Robb at 15/07/2015 - 10:27
Reply to the comment left by "Neil Robb" at "15/07/2015 - 10:27": Hi Yes, your comments place you in the first camp, no longer able to deduct finance costs from profits. If anyone can provide their understanding of the second...
Read More →Reply to comment left by Gary Mason at 15/07/2015 - 09:50
Reply to the comment left by "Gary Mason" at "15/07/2015 - 09:50": Hi I see we differ on how we think the calculation are done (this isn't, for example, a maths error). As already stated one group believes that finance...
Read More →Reply to comment left by Simon Dewsberry at 14/07/2015 - 23:57
Reply to the comment left by "Simon Dewsberry" at "14/07/2015 - 23:57": I'd like to add a few things to this conversation. Firstly we are all working off limited information and the full facts hopefully will come out soon. We...
Read More →Reply to comment left by Jason E at 13/07/2015 - 23:07
Reply to the comment left by "Jason E" at "13/07/2015 - 23:07": ... if this is correct then the actual numbers are Pre 2017 Actual Profit £50K, tax £9403, take home £40,597 Post 2021 Actual profit £50K, tax £28,643, take...
Read More →Showing 20 of 28 comments