Owning a 2nd rental property - Income Tax question

Ozret

I'm in the early stages of thinking about purchasing a 2nd property to rent out.

I know you don't have to pay Income Tax unless you exceed £2500 on a property. Is this per property or would I have to pay I.T on any income from a 2nd by to let?

I've had a quick look on the Government website but I can't seem to find the answer.

Thanks in advance

maas

Ozret wrote: »

I know you don't have to pay Income Tax unless you exceed £2500 on a property.

lol i didnt even know this

thanks for informing me

mik82

Ozret wrote: »

I know you don't have to pay Income Tax unless you exceed £2500 on a property. Is this per property or would I have to pay I.T on any income from a 2nd by to let?

Who told you that? You have to pay income tax even if it is less than £2500, you just don't have to fill in a tax return. You fill in a form P810 to adjust your tax code and pay via PAYE. The £2500 will be across all property lettings, not per property.

Ozret

mik82 wrote: »

Who told you that? You have to pay income tax even if it is less than £2500, you just don't have to fill in a tax return. You fill in a form P810 to adjust your tax code and pay via PAYE. The £2500 will be across all property lettings, not per property.

Sorry, thats what I meant, re the P810/ tax code adjustment. Just didn't explain myself very well.

Thanks for the clarification re the property lettings and per property

G_M

As mik82 says.

See also:
[FONT=&quot]New Landlords[/FONT][FONT=&quot] (information for new or prospective landlords)[/FONT]

dimbo61

You are starting a new business and if you have little idea of the basics
I would speak to an accountant who deals in BTL,s
Get yourself a mortgage broker who can get you a good BTL mortgage.
Speak to local Letting Agents so you know the local market.