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Hi all, my partner and I jointly own 5 btl's which generate around £30k income pa. The mortgages are around £9k pa. We hold the properties jointly and both earn about £25k each from our jobs. Will we be greatly affected by s24? Advice greatly appreciated.
It depends what your longer terms goals are and what latent gains your portfolio has.
i would very strongl6 suggest you get some tax structuring advice but pick an accountant who does not specialise in compliance. You want someone who think creatively about your situation and goals and not be biased towards or against one option.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)
No you are below the forty percent tax bracket by 2020 it is ment to be 50 k . So you should be fine
Where does the £50k come from as I just read on the .gov site and it says the bracket for 19/20 and 20/21 lower rate limit is estimated to be at £37.5k with £12.5k allowance. If I assume the OP's case at £25+£15k = £40k - £12.5k = £27.5k as income before mortgage and other expenditure.
Correct me if this is incorrect.
Hi - Hammond announced it in a budget it was meant to be a Conservative policy.
What have politicians have ever said and fulfilled it.
Oh sorry the trickle down was promised and its is still being fulfilled...
From what I have read, listened to and talking to others this is what I have deduced. I assume your properties are not incorporated. That is another topic to go through.
You probably have already worked out the interest you pay out of the total mortgage.
On Basic rate payer
You should be ok. As after 2020 it will be 20% tax saving form Mortgage interest for all.
On Higher rate payer
You might loose 20% as After 2020 it will all of the interest will be 20%.
It looks like you and partner are basic rate payer as suggested prior
TALK TO A PROPERTY TAX ACCOUNTANT specialist.
Assuming your pseudo name SW1 you are based in SW London. If you are go to the National Landlord Investment show in Olympia on 21st March and get advice from a Tax man. You will get the right advice as these guys deal with properties and will be more personal to you and your partners situation.
register free here
This is never easy but I will give you my view
if you stay a basic rate tax payer BTL can be good
you both have a 50k limit from April
so you can earn 100k
if you bridge the 100k I am not sure BTL is wise
my advice would be borrow as little as you can other wise s24 will hit you hard
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Hi, thanks for the advice. We are based in the north east - SW are my initials. We both work pt hence the salaries, but get by OK given that life is much cheaper up here. Our plan is to stay within the basic rate whilst increasing net assets. Thanks again.
.... and of course another way to ensure your cashflow is maximised is to constantly review your mortgage rates with a specialist BTL Broker.
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