And I thought the tax man was penalising landlords

ProDave

Just filling in our tax returns.

We only have the one property let, jointly owned so both equally liable for half the profit.

There is no mortgage so our outgoings are low, minimal repairs needed.

THEN I find you can CHOOSE to just deduct £1000 "property income allowance" instead of deducting actual expenses.

In our case this allowance exceeds our actual expenses, particularly as with the property being jointly owned, we each get this allowance, so £2000 deducted in total

Thank you Mr tax man for changing the rules and reducing the tax due on our rental property.

Am I missing something?

greendoor665

The new tax rules punish landlords with mortgages, not those who own outright.

The aim of the allowance is to simplify the tax system for those with small property incomes but as you have noticed in some cases it will reduce the amount of tax payable.

ProDave

I notice in the case of self employment you can choose to take the same £1000 allowance instead of claiming actual expenses. Though in my case with that, actual expenses is greater so I did not choose that option.

Edi81

It replaces the old 10% wear and tear allowance for furnished Properties.

theartfullodger

The tax man penalizes all tax-payers: Income tax, fuel duty, VaT, etc etc - it's always been like that. The chancellor changes the rules, making it more or less painful for different groups. Yes, after years and years of soft treatment landlords are being slightly more taxed: Haven't they squealed!

ProDave

theartfullodger wrote: »

The tax man penalizes all tax-payers: Income tax, fuel duty, VaT, etc etc - it's always been like that. The chancellor changes the rules, making it more or less painful for different groups. Yes, after years and years of soft treatment landlords are being slightly more taxed: Haven't they squealed!

That is my point, I am being slightly less taxed and it has been made easier for me.

I must be in the minority.