How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I HAVE 5 BUY TO LETS , TOTAL MOROTGAGES £900 PCM INCOME £1920

Resolved Question:

I HAVE 5 BUY TO LETS , TOTAL MOROTGAGES £900 PCM INCOME £1920 I MADE £12000 AND PAID £2400 TAX WHAT DIFFERANCE WILL THE NEW RULES MAKE TO ME
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site. Thank you for your question.

The difference is on tax relief on mortgage interest .. this would be restricted to basic rate of tax i.e. 20%.

Buy to let landlords -

In a Budget the Chancellor slashed the tax relief that private landlords receive on their mortgage interest payments, cutting it from 40pc or 45pc to 20pc by April 2020.

There is some useful information here

http://www.telegraph.co.uk/finance/budget/11724804/Buy-to-let-How-todays-Budget-will-affect-landlords.html

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Sorry I just need to no the difference in numbers I cant understand this 20% or 40% tax relief at the moment I just seem to pay 20% on profit will that stay the same I am not a 40% tax payer

Expert:  taxadvisor.uk replied 2 years ago.
Lindsay, thank you for your reply and clarification.

As you are a basic rate tax payer paying tax at the rate of 20% on your profits/income, the changes introduced in the Budget would not affect you.

It is for those taxpayers who have been claiming relief at their topr rate of tax.

I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you

Related Tax Questions