Can I save on tax if my wife takes out BTL?

theartfullodger

If a BTL would be loss making @40% tax then it would also lose money at any other tax rate: (tax paid on profit after expenses).

Clearly I bow to you superior financial genius but starting a business that expects to make a loss seemed unwise.


But pleased you accept the fundamental truth of my original point.

Cheers!

00ec25

theartfullodger wrote: »

If a BTL would be loss making @40% tax then it would also lose money at any other tax rate: (tax paid on profit after expenses).!

what he means is that he has other ineligible costs which expose his cash based profit to being reduced to zero or loss making if he has to pay an extra 20% in tax

see his other thread

googler

theartfullodger wrote: »

If a BTL would be loss making @40% tax then it would also lose money at any other tax rate: (tax paid on profit after expenses).

Clearly I bow to you superior financial genius but starting a business that expects to make a loss seemed unwise.

We all reviewed his projected income etc in his other thread on much the same topic....

theartfullodger

If it's that close to the edge at a time of record low interest rates ( I remember paying 15%interest under Thatcher on a mortgage) then don't do it anyway, to susceptible to Gideon Osborne's genius ....

Doogle2

theartfullodger wrote: »

If it's that close to the edge at a time of record low interest rates ( I remember paying 15%interest under Thatcher on a mortgage) then don't do it anyway, to susceptible to Gideon Osborne's genius ....

I do expect rates to rise, so would be looking to fix the rate for 2 years. If and when rates do rise, surely this will force rents to rise as well, as many Landlords will be forced to raise rents or go out of business.

CKhalvashi: I have thought about BTL a bit further out, such as Stoke, but its a bit too far for me to travel to should I need to and I dont know much about the areas.

note_2

£25k for a property in south wales hahaha.

yes you could buy one in an ex mining town with 50% unemployment for sure, wouldnt offer much capital growth prospects though.....:D

theartfullodger

Force rents to rise when interest rates rise? What, like all those landlords dropped their rents when interest rates dropped.

With respect you appear to have a lot to learn... a very dangerous position when risking significant investment.

Cheers!

Doogle2

theartfullodger wrote: »

With respect you appear to have a lot to learn... a very dangerous position when risking significant investment.

Cheers!

I couldn't agree more, I do have alot to learn. I'm not planning on jumping in now, but hope to at some point next year if I feel that the BTL venture will be fairly water tight. Its not all my eggs I'm playing with, but its a lot of them, so I wont move them from my 2-4% investments if I can not see a bigger long term gain.

I did compare saving accounts and ISA's etc at 3% vs property and although its better to save now (as BTL may only just break even during the repayment stage), when the property is paid for in 20-30 years, the paper value of the property investment is much greater than the return on the savings when considering rental returns and capital value, especially as you'd expect the property to have gone up in value by then as well. This is why I see this as a long term investment for my pension.

CKhalvashi

Loopgames wrote: »

Where? Where? Where?:drool:

Ours are in CF48. Paid £47,000 for 3 (2x 2 bed + 3 bed), which are rented for £85, £95 and £105 a week respectively.

£30,000 will get you a good enough property to do up cheaply at auction. Keep an eye on Rightmove.

CK