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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5208
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm considering taking on a buy to let property. The

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I'm considering taking on a buy to let property. The interest only mortgage will cost approximately £250 a month. The rental income will be approximately £500 a month. My other sources of income total approximately 47k pa, made up of a pension (paye tax), part time employment (paye tax) and free lance design- taxed via self assessment.With the revised allowable expenses coming in for buy to let, approximately how much tax would I pay just on the rental income please?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for you question.

I am carrying out calculations with changes to allowable expense and will post answer shortly.

Many thanks

Customer: replied 5 months ago.
thank you, ***** ***** forward to receiving your answer

Thank you fo ryour patience.

It appears you are a higher rate tax payer and I have done my calculations on that basis.

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.

Under Relief at 20% ..

for tax year 2019-20, relief restricted to 20% on 75% of interest paid and not 25%..typing error.

Many thanks

table with corrected narrative

Many thanks

Customer: replied 5 months ago.
Many thanks, ***** ***** very helpful. can I assume that other claimable costs such as maintenance of property would reduce the tax bill further?
Customer: replied 5 months ago.
23/02/2018 04:22
Many thanks, ***** ***** very helpful. can I assume that other claimable costs such as maintenance of property would reduce the tax bill further? I don't need figures for this, just to be sure I understand the principle. Many thanks

Thank you for your reply.

My apologies for the dealy in responding as I was away from my desk.

There is no change to how other allowable expenses are dealt. They are deducted as normal in arriving at profit from UK property. The restriction is on interest payable only.

I hope this is helpful and answers your question.

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