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  • FIRST POST
    • funnymonkey
    • By funnymonkey 19th May 17, 9:57 AM
    • 64Posts
    • 8Thanks
    funnymonkey
    BTL how to calculate tax on profit and income?
    • #1
    • 19th May 17, 9:57 AM
    BTL how to calculate tax on profit and income? 19th May 17 at 9:57 AM
    Can anyone help.me please?
    I with the new rules being phased in over the next 4 years how do you calculate your profit and btl income for taxation purposes as you can't be taxed both?
    Thank you
Page 2
    • buglawton
    • By buglawton 19th May 17, 11:08 PM
    • 7,045 Posts
    • 3,303 Thanks
    buglawton
    It worked while the banks had their property Ponzi running at full steam ahead, and people believed that "You can`t go wrong with bricks and mortar!" it meant that someone with an existing residential mortgage could be in the market for one or even two more property loans...Great! Bonus all round! What could possibly go wrong? Well a collapse in the Ponzi requiring the lowest interest rates in history plus endless QE (that has not really worked too well) could go wrong, plus half the population getting so peed off with not being able to afford a decent home that they voted for Brexit. It was "successful" in getting loads more property backed credit out to the masses, but that isn`t the kind of "success" that attracts votes any more, so we are seeing the reversal of the policy that`s all.
    Originally posted by Crashy Time
    Hmm. Some good points.

    Let's take the example of a highly developed economy like Germany, a country I lived in for years where the lifestyle is truly enviable. Only 40% own compared to today's 70% UK ownership.
    That must mean a lot of landlords. And they don't even have council housing as such over there!
    OK, most property is owned by corporate - well, often small company - landlords. And the investors are... to-be pensioners. It's just a matter of mechanism in the end.

    Try this from your favourite newspaper:
    https://www.theguardian.com/money/2011/mar/19/brits-buy-germans-rent
    • 00ec25
    • By 00ec25 20th May 17, 12:23 AM
    • 5,587 Posts
    • 4,991 Thanks
    00ec25
    Yeah Crashy and 00ec25s what a pair, will tidy up!
    Originally posted by buglawton
    I note you appear to have deleted one of your posts as you may have recognised your error? I also note you haven't replied to the OP anyway, so I assume you wish to make it triplets?

    So let's say you are good artist who sells their work but hopeless at tax returns, Or a good builder who is busy but hopeless at tax returns. They should give up doing art/building?

    edit: Now I think about it, I do know a BTL landlady in London who lives in a shared house, has just a room to herself, but rents out her BTL to augment her low income. She gets all her tax done by an accountant. Works for her.
    Originally posted by buglawton
    so your latest comment basically agrees with what I said to start with: where applicable, professional support is best for those unable to deal with tax themselves.

    err, I'll put it down to the fact it was a Friday night when (typically) people are not necessarily at their best intellectually given they may be in vino.
    Last edited by 00ec25; 20-05-2017 at 12:30 AM.
    • buglawton
    • By buglawton 20th May 17, 11:23 PM
    • 7,045 Posts
    • 3,303 Thanks
    buglawton
    Before you get too excited, the deleted post is exactly as #21 to Crashy, I'd erroneously replied to you meaning to reply to him. So, nothing to see here move along please.
    • Crashy Time
    • By Crashy Time 21st May 17, 4:06 PM
    • 5,306 Posts
    • 2,223 Thanks
    Crashy Time
    Hmm. Some good points.

    Let's take the example of a highly developed economy like Germany, a country I lived in for years where the lifestyle is truly enviable. Only 40% own compared to today's 70% UK ownership.
    That must mean a lot of landlords. And they don't even have council housing as such over there!
    OK, most property is owned by corporate - well, often small company - landlords. And the investors are... to-be pensioners. It's just a matter of mechanism in the end.

    Try this from your favourite newspaper:
    https://www.theguardian.com/money/2011/mar/19/brits-buy-germans-rent
    Originally posted by buglawton

    The appetite wasn`t there in the German public to gobble up the BTL/Mew etc. loans, different history, different attitude to money, so the Brits went crazy while the German banks made their more extravagant loans to the Greeks etc.
    • Crashy Time
    • By Crashy Time 22nd May 17, 12:09 PM
    • 5,306 Posts
    • 2,223 Thanks
    Crashy Time
    I note you appear to have deleted one of your posts as you may have recognised your error? I also note you haven't replied to the OP anyway, so I assume you wish to make it triplets?

    so your latest comment basically agrees with what I said to start with: where applicable, professional support is best for those unable to deal with tax themselves.

    err, I'll put it down to the fact it was a Friday night when (typically) people are not necessarily at their best intellectually given they may be in vino.
    Originally posted by 00ec25

    Most small time BTL people won`t want to pay out even more for "professional support" though? Many are likely to quit the game IMO, as the PTB now want them to do.
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