tax on BTL and investments

havingaball74

Hiya,
If I rent my house out for £525 a month (it is worth £110k with a mortgage of 45k) how much tax would I pay each month? The new rules are confusing! If I invest elsewhere, which is the most tax efficient way?
Thanks.

[Deleted User]

What are your expenses?
Is it furnished?
How much interest do you pay?
What is your other income?
Are you HR?
What are your other investments?
How much dividend income do you receive?
How much interest do you receive?

Bluebirdman_of_Alcathays

Not enough information I'm afraid. How much of mortgage is the interest component? What is your salary? What other costs will there be?
What I can see is that the gross yield is 5.7% - once tax, costs and voids are factored in that will drop. My SIPP consistently performs way above this.

agrinnall

What your current mortgage repayments are may not be relevant once the property becomes a rental rather than owner-occupied, at best you will need consent to let from your provider (which may come at a cost), they may insist that you convert to a buy to let mortgage (which may be at a higher interest rate) or they may decline to continue the mortgage so you would have to find one elsewhere. Using the current figures can only give you a ballpark estimate of your potential profit and hence tax to be paid.