New btl tax rules and Child tax credit implications

System

Davholla - Tax credits are independent of savings? - just taxable income

System

Unless these properties are fully leveraged I think shares are a better investment anyway, - more liquid, more diversifiable, potentially better yielding against a non leveraged but toilet

System

*buy to let
Not but toilet, however that was my location

slowpoke_rodriguez

MatthewAinsworth wrote: »

Davholla - Tax credits are independent of savings? - just taxable income

That's what I thought, tax credits only depend on taxable income.

So, OP, sell your BTLs and stick the profits, if any, in ISAs and premium bonds instead.

System

Or better, pensions, they reduce your income

FBaby

*buy to let
Not but toilet, however that was my location

Ha ha excellent freudian slip!

Or better, pensions, they reduce your income

Indeed, but that will reduce OP's overall disposable income and I expect that's the issue for her.

System

I would say that further adds to the case of selling, releasing money to spend, and reducing "income" from letting. But on 27k a year Im not sure they'd qualify anyway (25k at least for 1 child) and it doesn't resolve the cash flow problem

That said I don't see why someone on that income would have a cash flow problem, if they're not renting and other people on less money are. Not renting is how I save

anchovypizza

Oh Dear.

It might be a good idea to start telling a lot of people to not watch day time property ramping BTL !!!!!! and forget what someone told you at a dinner party about making fast riches in property speculation who probably got into the game 20 years ago, or reading the endless MSM drivel up until last year about becoming a millionaire with property, which has now rapidly changed tune, even on the property debate board MSE with clowns such as wotstwat and skeppiDH daily preaching about property is a one way bet.

Some clever people and more often lucky people did make good money from property, but now with the recent changes to tax etc even these people will be struggling, You mention that you only wanted to "try your best" and get on in life, but can someone please show me where it was set in stone that BTL rental is a one way bet and governments are put in place in order to hold your hands.

I run a business, a proper business, and from the start it was a risk and will always be a risk, I suggest you sell up as it is quite obvious you do not have a clue what you are doing and you stand to lose far more if you do not.

System

I would think there would be long term capital gains in property just like most stocks, but why does it nor turn a profit?

booksurr

FBaby wrote: »

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

Agreed, the tax changes do indeed add "back" gross rental income to the top of the taxable profit calculation, but that is only relevant where that pushes you into the higher rate tax bracket and therefore the tax reduction on interest relief is capped at basic rate.

on 27k salary + 2 rental properties income we need to know the figures before any further comment is meaningful