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Rental Income

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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 ?
 
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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.
 
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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.
 
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Longterminvestor

Administrator
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).
 
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FWL

Member
So you are looking longer term - are you looking to build a large property portfolio?
 
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PostBrexitInvestor

Member
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?
 
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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.
 
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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.
 
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realdeals

Active 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.
 
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