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First BTL - Tax implications
Ljc80_2
Posts: 113 Forumite
Hi
I have seen a flat that I am considering purchasing to then let out via a letting agent. This is my first BTL so I am trying to fully understand the tax implications.
The flat is £75k which I was planning on paying outright (cash is currently in a low interest ISA)
The letting agent has advised I can achieve £500-£550 per month and demand is high for the type of property and location.
As a higher rate tax payer I assume this £500 per month income is immediately effectively £300 after 40% income tax
While this is still much more than current ISA interest, as a newbie prospective landlord I want to know if there are ways to limit the amount going in tax to increase net income.
I don't currently do self assessments as current income is all just from normal employment.
Is there much expenses I can realistically take off the income when declaring the it on a self assessment?
Would another option be to put the rental agreement in my wifes name (lower rate tax payer) to limit the taxable amount?
Are there any other tax things i am missing?
Any thoughts appreciated before i commit to it
Thanks
I have seen a flat that I am considering purchasing to then let out via a letting agent. This is my first BTL so I am trying to fully understand the tax implications.
The flat is £75k which I was planning on paying outright (cash is currently in a low interest ISA)
The letting agent has advised I can achieve £500-£550 per month and demand is high for the type of property and location.
As a higher rate tax payer I assume this £500 per month income is immediately effectively £300 after 40% income tax
While this is still much more than current ISA interest, as a newbie prospective landlord I want to know if there are ways to limit the amount going in tax to increase net income.
I don't currently do self assessments as current income is all just from normal employment.
Is there much expenses I can realistically take off the income when declaring the it on a self assessment?
Would another option be to put the rental agreement in my wifes name (lower rate tax payer) to limit the taxable amount?
Are there any other tax things i am missing?
Any thoughts appreciated before i commit to it
Thanks
0
Comments
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Pay a qualified tax advisor as opposed to relying on random strangers on the internet many of whom believe BTL to be an abomination on our society0
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