Rental Income

Discussion in 'Property Finance and Real Estate Loans' started by Habib123, May 9, 2018.

  1. Habib123

    Habib123 New Member

    ok so we all know the government are reducing the amount of mortgage interest you can claim against your annual rental income to reduce your taxable profit in chunks of 25% from 2017 to 2020, where it will be zero. What are the other costs a landlord can claim to further reduce their taxable profit ?
     
  2. lookinginvest

    lookinginvest Member

  3. Steve Kostovski

    Steve Kostovski New Member

  4. diyhelp

    diyhelp Active Member

    I hear that the opportunity to offset mortgage interest will still remain for the those properties bought within a company. However, there are other company related costs to consider there.
     
  5. diyhelp

    diyhelp Active Member

    There are additional costs to consider when starting/running a comany which will also need to be taken into consideration and compared against interest charge offset savings.
     
  6. Kathiea Lukus

    Kathiea Lukus New Member

    Ii is really a great news but not sure. I also hear that the company related taxes only. But it give me a breath.....
     
  7. Kathiea Lukus

    Kathiea Lukus New Member

    Can I claim it for further to reduce? I am a medium type of landlord.
     
  8. Longterminvestor

    Longterminvestor Active Member

    Sorry, I am not sure what you are asking?

    If you are a basic rate tax payer you will be no worse off under new mortgage rules, if you are a higher rate you could be a lot worse off. That is assuming your properties are held in your own name as opposed to in a company (where it is all very different).
     
  9. Kathiea Lukus

    Kathiea Lukus New Member

    If I want to sell my land or want to make an apartment or villas for rent so how much taxes I need to pay? Can, I need any real estate broker or agent for doing this?
     
  10. Kathiea Lukus

    Kathiea Lukus New Member

    I think it is the best way for an apartment or villas owner to give it in rent so that the rental income of an owner increases day by day. His things remaining own.
     
  11. FWL

    FWL Member

    So you are looking longer term - are you looking to build a large property portfolio?
     
  12. Kathiea Lukus

    Kathiea Lukus New Member

    If I want to reduce my taxable profit 30% on my rental income and I request the government to reduce my taxes 2017 to 2020, I become free from my debt because I have many apartments and villas which I give in rent to the customer and many broker and agent also work under me.
    But my rental income decrease day by day because of a few reasons. Because of that, I fell in deep debt. The government taxes are so high, to giving the charges now so hard for me. So it great for me if the government reduces some of the fees.
    Thanks
     
  13. Could you not sell at least one of your assets to pay down all/part of your debt? This might allow you to effectively start again with a clean slate?
     
  14. Kathiea Lukus

    Kathiea Lukus New Member

    Thanks for giving this advice. I make out your idea, and now I am starting again with this clean slate. I think it helps me so much more.
    Thanks again a lot. I must ask you if I face any problem for further.
     
  15. FWL

    FWL Member

    It may also be worth considering a company to hold your property assets going forward as the UK government seems intent on increasing taxation for private landlords. Take advice from your accountant.
     
  16. Kathiea Lukus

    Kathiea Lukus New Member

    The UK government know it well that there is a lot of profit in Real Estate. The private landlords give their property in rent so that they make a lot of profit. Many people come to stay in big cities, but they aren't able to buy property in those cities. So they all stay in apartments and villas in rent.
     
  17. FWL

    FWL Member

    Yes, I totally agree, the government appear determined to increase the costs associated with private rental properties and therefore reduce the profit of private landlords. Many people believe the government is looking to bring in large corporations which will dominate the market.
     
  18. Kathiea Lukus

    Kathiea Lukus New Member

    If the government bring it to a large corporation, then it will be good or bad for private rental properties and private landlords. It hard in the rental income.
     
  19. realdeals

    realdeals Member

    I think the government will squeeze private landlords even more in the future which will favour the corporates who have their property assets/businesses wrapped up in a company. At some point economies of scale will also come into play, which will also favour the large corporations.
     
  20. Kathiea Lukus

    Kathiea Lukus New Member

    2017 to 2018 75% 25%

    2018 to 2019 50% 50%

    2019 to 2020 25% 75%

    2020 to 2021 0% 100%

    Hi, lookinginvest,
    The page that you share is useful. Cheers for 2020 to 2021. This table that you share according to the yearly taxation reduction from the UK government must give relief to the private landlords.
     
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