Tax on property – high or low rate?

by Readers Question

7:34 AM, 12th April 2017
About 2 years ago

Tax on property – high or low rate?

Make Text Bigger
Tax on property – high or low rate?

I have 2 buy to lets in West Yorkshire. 

I have a salary of £30k from a full time job.

Each property annual turnover is 6000.

I also have a vitamin company with net profit £20k

Will I be high tax band or low?

Thanks

Amjed

 



Comments

Mark Alexander

7:38 AM, 12th April 2017
About 2 years ago

Hi Amjed

You will begin paying the higher rate tax when your "taxable income" exceeds £43,000.

To calculate this you need to work out the following:-

Salary + dividends from your company + net profit from your rental properties + disallowed finance costs .

In the 2017/18 tax year the amount is disallowed finance costs will be 25% of the finance costs incurred in respect of individually owned residential rental properties.

If in doubt you should appoint an accountant.
.

Amjed Khan

9:23 AM, 12th April 2017
About 2 years ago

Nice to see another Amjed on this forum.

A good accountant will not only tell you your tax band but would help to organise your affairs more efficiently.

Out of curiosity which vitamins does your company sell? As this isn't property related you could email me amjedkhan@talktalk.net.

Gary Dully

13:07 PM, 12th April 2017
About 2 years ago

Try a web version estimator here: http://scruffypropertywanted.com/s24 - if you are affected - contact Mark Alexander or your accountant.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Croydon Council Support S21 Ban

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More