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Buy to let. How much will the taxman take?

pmat · 2005-07-26 14:01:25

Hi all, I am looking at selling my home in the near future but where I live people are finding it very difficult to sell their properties. There is going to be huge industrial investment in the area during the next 6-10 years and therefore lots of contractors. I am considering obtaing a Buy-to-Let mortgage for my current…

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Pal Posts: 2,076 Forumite

27 July 2005 at 8:47AM

pmat wrote:

hmmmm, so there is no chance of paying off the house in full over 10 years using all/most of the rent income? are the taxmans' figures based on a 25year mortgage?

If the rent is high enough you can pay off the mortgage using the rent money after the taxman has taken their share, but you cannot use tax free rent to actually pay off the capital.

The key with both rent and capital gains is that you only pay tax if you make a profit, and you only pay on that profit. You don't pay tax if you have lost money, but then if you are losing money tax is the last thing you need to worry about!

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Buy to let. How much will the taxman take?

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