Summer Budget 2015 – Landlords Reactions
2:00 PM, 8th July 2015, 11 years ago
9619
Categories:
The concern is;
Budget proposals to “restrict finance cost relief to individual landlords”. 
To calculate the impact of this policy on your personal finances download this software
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Budget 2015 Campaign
9,619 comments on this article
Learn from your peers’ experience
A different perspective could help you spot an issue, avoid a mistake or find a better way forward. Read the comments and add your own views if you wish.
Member Since January 2011 - Comments: 12255 - Articles: 1477
6:21 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Gary Mason” at “14/07/2015 – 17:26“:
Hello Gary
The rental profit is zero because there is no rental income, hence there is no tax to pay on that.
Where you have gone wrong is by adding the mortgage interest to the income.
I don’t know Simon but I do know that he is right.
If your accountant tells you different then you’d be better off with Simon.
I agree this landlord would be better off under todays taxation structure because he could roll over the entire £10,000 loss.
.
Comments: 96
6:38 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Appalled Landlord” at “14/07/2015 – 18:20“:
“Appalled Landlord”
Please give me detailed workings of this scenario in Numerics:
I earn £37000 per annum from my employment (employed)
Total Rental: £96000.
Repairs maintenance £11,500.
Interest £51000.
Please give me full breakdown as if you are an accountant under new rule…step by step to see, where discrepancy actually lies.
Comments: 96
6:39 PM, 14th July 2015, About 11 years ago
Simon,
Could you also give me breakdown so I can understand.
Appalled Landlord, it was refreshing to hear that you agree that end result is same.
Member Since January 2011 - Comments: 12255 - Articles: 1477
6:42 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Gary Mason” at “14/07/2015 – 18:39“:
Would you like one from me too?
.
Comments: 96
6:43 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Mark Alexander” at “14/07/2015 – 18:42“:
Please Mark.
Comments: 118
6:45 PM, 14th July 2015, About 11 years ago
Let’s all play nicely x
Member Since January 2011 - Comments: 12255 - Articles: 1477
6:51 PM, 14th July 2015, About 11 years ago
Current position
Rental income: £96,000
Less allowable expenses
Repairs & maintenance £11,500.
Interest £51000
Taxable profit = £33,500
2020 position
Rental income: £96,000
Less allowable expenses
Repairs & maintenance £11,500.
Taxable profit = £84,500
In 2020 you will be allowed to reduce your tax bill by 20% of your interest costs, as of today the interest you are paying is offset against your income as an expense.
In both scenario’s your additional salary will be added to your taxable rental profits in order to calculate the total amount of tax you have to pay.
.
Comments: 119
6:59 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Mark Alexander” at “14/07/2015 – 10:34“:
Apologies for being off topic…..but in response…..yes…..and no….2k tax break was introduced only last year…..but as of the budget just gone……This will be removed for 1 employee companies…..so yet again…..another hit for me 🙁
Comments: 96
7:01 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Mark Alexander” at “14/07/2015 – 18:51“:
Mark,
Please provide full workings to the pound if you can. Thanks
Member Since January 2011 - Comments: 12255 - Articles: 1477
7:08 PM, 14th July 2015, About 11 years ago
Reply to the comment left by “Gary Mason” at “14/07/2015 – 19:01“:
I thought I had.
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