Property rental tax

sarah_id1

Not getting a straight calcualtion.
Letting a BTL property for £1400 a month with usual agency and other cost. Whats the tax calculation for this rental income be?

CLAPTON

what are the 'usual' costs?

antrobus

sarah_id1 wrote: »

Not getting a straight calcualtion.
Letting a BTL property for £1400 a month with usual agency and other cost. Whats the tax calculation for this rental income be?

The profits derived from a BTL business are taxed in the same way as any other business.

holly_hobby

They are declared (net of permitted deductions) by self assessmernt under your income, and accordingly taxed as income under your highest rate.

Hope this helps

Holly

zygurat789

antrobus wrote: »

The profits derived from a BTL business are taxed in the same way as any other business.

Are they not taxed as rents which is different from a business.

insured

They are taxed as rents and shown on your income tax return as income from property.
The rules used to calculate the income from property are the same as the rules used to calculate trading income.
The tax treatment of property income is slightly different from trading income. Whilst both trading income and income from property is added to your other income and taxed at your highest rates, the main difference is that you cannot offset losses from property income from your other income, nor can you carry it back.

holly_hobby

As above ...

Fundamentally rental receipts come under Schedule A income - your SA return has a separate property section, where you detail the income and residual amount for IT purposes, but as I stated earlier, there are no different tax bandings etc, its at your highest IT rate.

Hope this helps

H xx

nomunnofun

holly_hobby wrote: »

As above ...

Fundamentally rental receipts come under Schedule A income - your SA return has a separate property section, where you detail the income and residual amount for IT purposes, but as I stated earlier, there are no different tax bandings etc, its at your highest IT rate.

Hope this helps

H xx

We had schedule E recently - turning into a tax library on here!
Of course, furnished lettings used to be D case VI before they simplified matters - the real point being that it is classed as investment income, and losses cannot be set against earned income.

holly_hobby

nomunnofun wrote: »

We had schedule E recently - turning into a tax library on here!
Of course, furnished lettings used to be D case VI before they simplified matters - the real point being that it is classed as investment income, and losses cannot be set against earned income.

Think we all agree on that nomun., the OP hasn't mentioned any losses being the issue re HMRC reporting, but its been nicely cleared for them should it arise in the future.

H x