New btl tax rules and Child tax credit implications

fairy_lights

If you're not making a profit then why not just sell them?

HiToAll

Handouts from taxpayers, and YOU are concerned.
Should be the good, hard-working, honest taxpayer that is worried, and hopeful that this change you talk about does come in as you fear, (and taxpayers rejoice).

Thrugelmir

funnymonkey wrote: »

I won't be able to get wtc/ctc as I'm presently on 27k aurally so with the new changes I would be on about 38k.

Seems fair enough. Austerity is being applied across the board. See absolutely no reason for a business to be subsidised by other UK taxpayers.

FBaby

silvercar wrote: »

New tax rules mean that interest on mortgages on let properties is restricted to the basic rate. Unless you are a higher rate tax payer this won't effect you.

OP's issue is more in regards to rental income being treated as....income! (rather than profit).

I didn't read anything about this, but in any case, if it's not through this that tax credits will be restricted, it will via Universal Credit. At least this way, if true, it will come in quicker.

Thrugelmir

FBaby wrote: »

OP's issue is more in regards to rental income being treated as....income! (rather than profit).

Net income is profit in this case. What's changed?

System

Just add to pension to bring your income down to qualify, perhaps do your investing through a sipp pension

ognum

Interestingly OP was also getting £70 help towards her mortgage less than two years ago which somehow doesn't feel quite right to me.

My advice would be that if your buisness, because letting property is a buisness is not making you any money then sell the properties. Of course you need to consider the capital growth of the property alongside you rental profit.

It sounds to me like you need to consider carefully your position.

peter_we

Any capital over £6000 has to be declared. This includes property that isn't your home.

http://www.entitledto.co.uk/help/savings

ellie27

funnymonkey wrote: »

Feel that I'm being forced to sell or move overseas whereas if I had not bothered I would have been entitled to all the benefits imaginable.....feels so unfair for trying to do your best

You own your own home AND you have 2 others that you rent out AND you get child tax credits - sounds like a much, much better position than the average household!

If you need to sell then do it, simple as that.

Not getting any sympathy from us!

davholla

peter_we wrote: »

Any capital over £6000 has to be declared. This includes property that isn't your home.

http://www.entitledto.co.uk/help/savings

So unless the OP only has £6k equity how does she get tax credits?