Dan Smith

Registered with Property118.com
Monday 14th October 2013


Latest Comments

Total Number of Property118 Comments: 12

Dan Smith

8:40 AM, 9th July 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Dan Smith" at "09/07/2015 - 08:32":

Mervin,

I believe higher rate tax payers now pay an additional 20% on the 12k on top of their usual profit:

So they still pay £3360 tax + (20% of 12k) = £2400: total = £5760?... Read More

Dan Smith

8:32 AM, 9th July 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Mervin SX" at "09/07/2015 - 00:30":

Mervin,

Can you explain:

"Before todays announcement:

Tax on Property Profit = £3360 (which is 40% of 12,000 minus 40% of 3600)"

I get the tax at 40% to arrive at the £3360 which is 40% of £8400, does this mean: '(which is 40% of 12,000 minus 40% of 3600)'

After today’s announcement (from tax year 2020-21):

Tax on Property Profit = £5520 (which is 40% of 12,000 minus 20% of 3600)

Similarly what does this mean: '(which is 40% of 12,000 minus 20% of 3600)' it still sys £3600?... Read More

Dan Smith

20:13 PM, 8th July 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Can anyone in simple terms explain how before the budget you could offset 40-45% (dependable on which tax band) of the mortgage interest against rental income and now only 20%?

It doesn't make any sense to me.

Pre budget you could offset 100% interest against rental income regardless so what/how has this changed today?

I think the terminology of 'tax relief' at 40-45% is getting mixed up with paying that amount in tax?... Read More

Dan Smith

19:34 PM, 8th July 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Hi,

The articles have stated numerous times today:

'from April 2017 landlords will no longer be able to claim tax reliefs worth 40% or 45% of the interest payments on their buy-to-let mortgages'

Is this correct as this is where I'm getting mixed up - this 40% and 45% should be written 100% as pre budget regardless of what rate taxpayer you could offset all of the mortgage interest against income right?... Read More

Dan Smith

18:31 PM, 8th July 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Hi Mark

Thanks for your reply but I'm with Romain, I still don't get what this tax relief is?

Whether you're a higher or lower rate tax payer you can offset all of your interest against the rental income, I get that.

So what is this 'tax relief'?

Before the budget it wasn't a basic rate tax payer could only offset 20% of the interest and a higher rate payer 40% of the mortgage payments, it was the full 100% so what am I missing?

Thanks... Read More