BTL tax changes for simpletons (me)

havingaball74

Can someone please explain this to me? I earn 37k and, if I let my house out to buy another (releasing equity) would make approx £7000 per annum rent. This, I believe, tips me into the 40% tax bracket. How does the taxation work? How would the new changes affect me? Are you taxed on all that £7000? If I am only just in the 40% tax bracket, does all get taxed at 40% or 20%?
I am trying to work out whether it is better to keep the house or sell it and put the £65k somewhere else.

HappyMJ

havingaball74 wrote: »

Can someone please explain this to me? I earn 37k and, if I let my house out to buy another (releasing equity) would make approx £7000 per annum rent. This, I believe, tips me into the 40% tax bracket. How does the taxation work? How would the new changes affect me? Are you taxed on all that £7000? If I am only just in the 40% tax bracket, does all get taxed at 40% or 20%?
I am trying to work out whether it is better to keep the house or sell it and put the £65k somewhere else.

I just answered this post on another thread.

You'll have expenses reducing your profit. You only pay tax on your profit.

If you put the £65k somewhere else you'll most probably be charged 40% tax on any income from that too.

havingaball74

Under the new taxation rules for BLT, what do they charge you tax on?

havingaball74

Is this true of the new BTL tax changes?

theartfullodger

havingaball74 wrote: »

BTL tax changes for simpletons (me).

If you are a simpleton you can't afford to be a B2L landlord.

If you are not a simpleton then your language is a disgrace, Sir!

How does the taxation work?

Tax is levied on transactions at government discretion & pays for those items deemed worthy (Trident, Tony Blair's pension, Expensive Police protection for Prince Andrew's daughters on holiday etc etc)

lovinituk

havingaball74 wrote: »

Under the new taxation rules for BLT, what do they charge you tax on?

Are all sandwich types included in the new taxation or just this one specifically?!

havingaball74

Thanks, all. I am not a simpleton generally, but certainly am it seems when it comes to tax/changes/number crunching. I am 41 years old and mortgage free, so have done ok for myself money wise. Was hoping to find answers on here to help me with my BTL confusion.

Bluebirdman_of_Alcathays

havingaball74 wrote: »

Thanks, all. I am not a simpleton generally, but certainly am it seems when it comes to tax/changes/number crunching. I am 41 years old and mortgage free, so have done ok for myself money wise. Was hoping to find answers on here to help me with my BTL confusion.

And it has been answered, many times.

havingaball74

Ok, thanks. Just ignore the post then. Helpful people can post.

ognum

havingaball74 wrote: »

Ok, thanks. Just ignore the post then. Helpful people can post.

Today you have posted the same thing on five different posts entitled

Buy to let
Remortgage own house to get BTL
BTL tax changes for a simpleton
What do you think the impact of BTL tax rises
Homeowner remorgaging and renting.

It is I think fair to say you have been given some great advice but to keep repeating the same question is just rediculous.

I hope you have the answer you want now because keep asking the question in the hope of getting a differ not answer is just silly.

havingaball74

Fair enough. Point taken. And, ironically, I am still baffled!