12:32 PM, 16th June 2022, About 2 months ago 2
Calculating the extra amount of interest you will pay as a result of the recent 0.25% interest rate rise isn’t exactly rocket science for some people. However, if numbers isn’t your thing and/or you would like to understand how the Bank of England decision will affect your cashflow and your tax position I’ve designed a simple calculator below for you to use free of charge.
A common misconception is that an interest rate rise also increases the tax bill of private landlords who own mortgaged property in their own name.
The reality is that an interest rate rise does actually reduce your tax bill (by 20% of the interest rate increase in the form of a “tax credit”) so it’s not all bad news!
Therefore, I have also programmed the calculator to work out how much extra tax credit you will receive to reduce your future tax bill and also provided a net cashflow number to show you the actual impact of your pocket of the interest rate rise.
Previous ArticlePhew only a 0.25% increase in Bank Base Rate to 1.25%
Next ArticleAnyone still taking on ECO3 grant work?