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New btl tax rules and Child tax credit implications
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funnymonkey
Posts: 256 Forumite
Good morning.
Can anyone please help.
I am a single mum and own 3 properties, one we live in and two I rent out.
I make next to no profit at the rental only just covers the mortgage payments.
I am concerned that when George Osborne new rental tax rules are fully implemented it will not only increase the amount I pay tax but also as the rental will be calculated as income and not just profit then I won't be able to get wtc/ctc as I'm presently on 27k aurally so with the new changes I would be on about 38k.
Feel that I'm being forced to sell or move overseas whereas if I had not bothered I would have been entitled to all the benefits imaginable.....feels so unfair for trying to do your best
Can anyone please help.
I am a single mum and own 3 properties, one we live in and two I rent out.
I make next to no profit at the rental only just covers the mortgage payments.
I am concerned that when George Osborne new rental tax rules are fully implemented it will not only increase the amount I pay tax but also as the rental will be calculated as income and not just profit then I won't be able to get wtc/ctc as I'm presently on 27k aurally so with the new changes I would be on about 38k.
Feel that I'm being forced to sell or move overseas whereas if I had not bothered I would have been entitled to all the benefits imaginable.....feels so unfair for trying to do your best
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Comments
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I'm not going to bite. Too much....
Sell or live with it. Simple.0 -
I make next to no profit at the rental only just covers the mortgage payments.
I assume the mortgages are interest only, I also assume you are claiming the relevant tax relief for your situation?
P.S Please try harder when it comes to selling and puntuation.I am a LandLord,(under review) so there!:p0 -
As above....it already sounds like you are under paying tax even before rule changes. Oh dear!0
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Someone please tell me this is a wind up.0
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As others have asked, are you positive that you're not already making a profit on the rental properties?
If the mortgage payments are interest only and the rent only just covers the mortgage payments then what's the point of having them? You must be running at a loss by the time you take into account the other expenses of running a BTL business which seems daft. Even without the changes to the taxation of BTL it sounds as though you should be selling the properties.0 -
Don't forget you've had and will continue to have the several massive benefits including..
- tax reliefs on your mortgage interest payments and other valid expenses, not available to normal home owners... worth more than a little...
- the rental incomes from two properties..
- House price appreciation on all three properties, not enjoyed by those not owning property.
--- and will continue getting CB. Not to mention the other benefits you refer to in an earlier post here...
https://forums.moneysavingexpert.com/discussion/5091972
(sounds like some of those benefits might perhaps, given your rental incomes from two properties, be awarded in error? e.g. " £70 a week jsa and mortgage assistance of £70 a week ")
It does seem remiss of boy George to have only impacted some benefit entitlement through his radical revision of landlord tax reliefs: I can think of at least one landlord I know, currently in receipt of 6 tax-payer funded state benefits, who will have no reduction in any of them!
This has gorra be a wind-up
Your views on M Proudhon?0 -
How long have your rented and claim tax credits? Surely you can appreciate that if during that time you've had tax payers supporting yoy whilst you increased your capital wealth yoy are not going to get much sympathy. This was always a loop in the system hence why with universal credits you wouldn't even be able to claim at all so frankly you've been extremely lucky to have been in this position until now.0
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New tax rules mean that interest on mortgages on let properties is restricted to the basic rate. Unless you are a higher rate tax payer this won't effect you.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Why is it unfair? You are not really creating a business you are speculating on shortage of housing - unless of course you got the planning permission for the homes and then got them built, in which case I fell sorry for you.funnymonkey wrote: »Good morning.
Can anyone please help.
I am a single mum and own 3 properties, one we live in and two I rent out.
I make next to no profit at the rental only just covers the mortgage payments.
I am concerned that when George Osborne new rental tax rules are fully implemented it will not only increase the amount I pay tax but also as the rental will be calculated as income and not just profit then I won't be able to get wtc/ctc as I'm presently on 27k aurally so with the new changes I would be on about 38k.
Feel that I'm being forced to sell or move overseas whereas if I had not bothered I would have been entitled to all the benefits imaginable.....feels so unfair for trying to do your best0 -
Are you sure your paying enough tax????
Surely your not entitled to those benefits with that much equity/ income.
Did you get the properties on Right to buy by any chance?"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
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