Landlord Taxes Help

Watalie

BigDave81 wrote: »

Hi Everyone
Thanks for all your replies, most appreciated.
I currently have an interest only BTL mortgage so can deduct that amount, the emergency insurance, buildings insurance and service charge so will then just do a return for whatever is left over as I thought so thanks for confirming.

Only other thing is I was planning on adding the rental mortgage to my house mortgage to avoid very high arrangement fees and interest rates on BTL deals, would this be a bad idea then as I couldn't provide correct documentation to deduct the interest from that period?

Thanks again for all your help, still learning as I go!

You don't do a return for whatever is left over - you need to put all income and all expenses on the Tax Return - it's very straightforward and as advised above HMRC website has all the info.

Gwhiz

BigDave - you need to do some serious research on all your responsibilities to really understand what you are getting into.

BigDave81

B_Blank wrote: »

Why does everyone BTL to push up house prices for poor FTB

Hi, thanks for your post but this isn't really anything to do with the help required.

I got a BTL as my own lender was slightly short of the required amount and it was the only way to go. They refused to budge and this forced my hand. I would wish to avoid BTL wherever possible as this cost me double the interest and 5 times the arrangement fee.

But thankyou anyway FTB. I have 3 jobs, recently lost my father and am doing the best I believe I can for my two children to progress in life.

BigDave81

Gwhiz wrote: »

BigDave - you need to do some serious research on all your responsibilities to really understand what you are getting into.

Thank you that gives me a lot of help and points of research.

BigDave81

real1314 & G_M

Thank you very much for your assistance this is exactly what I needed and I appreciate your help.

The link between properties and mortgages will not be perfectly clear although from a friend I understand the renewal mortgage may be split so my mortgage continues and the additional loan is classed seperately at the same rate.

This will enable me to clearly show the loan and interest hence the deductible, this will save me thousands in arrangement fees and silly BTL mortgage rates.

Thanks all (ish) will update with progress (at some point).

bris

B_Blank wrote: »

Why does everyone BTL to push up house prices for poor FTB

So we can rent them to people like you.

tbs624

OP - google HMRC and the PIM (Property Income Manual) plus the help notes for SA105. It's pretty straightforward and if you have any queries the HMRC staff can actually be pretty helpful.

dopester

B_Blank wrote: »

Why does everyone BTL to push up house prices for poor FTB

Because many see it as a one way bet, based on what has been decades of ever rising house prices. They all want to squeeze people who need a place to live, but think it's also going to be ever rising rents and capital appreciation.



We'll see. So many of them still believe prices double every few years, and don't believe the dynamics can change, and have a period of reverse, with values falling hard, dramatically, over course of a few years... with no "price return" or "recovery" as they consider it, in that asset class.

Don't fear though... money is becoming ever tighter, cost of living harder, lending restricted and appetite to take big mortgages tailing off.

Property as an asset class for investment... I'd be terrified if I had any significant investment in that asset class - in terms of big debt to go along side it. Less so if I owned a home outright bought many years ago.

Graham_Devon

BigDave81 wrote: »

Thank you that gives me a lot of help and points of research.

To be fair, I'd have thought you'd have done this before buying. Seems rather strange to buy and then research what you have just bought into.