SMF - Just Installed!

Tax Questions

Started by gl3nnym, August 02, 2010, 05:57:12 PM

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gl3nnym

Hi All

First of all may I say that this site is brilliant. It have given me so much information and I thank my lucky starts that the angry Landlord started it. Well done Mr Man!!

Just wondering if anybody would be so kind as to help me a little further and provide a little clarity please.

My wife and I are thinking of letting out our flat and renting a house somewhere (to see what the area is like for a few years, then buying there). I have spoken to the tax people and they were helpful but I am still confused. We are looking at making minimal profit from letting the property so hopefully not sure than £1000. I understand this can be taxed at 20% on the lower tax rate? This obviously would not equate to much. What happens if we make around £3000 profit? How much would this cost us in tax for one financial year?

Also I have tried but still have no idea about Capital Gains Tax! Please could somebody tell me what this is? How much would I be expected to pay? I understand that is a vague question depending on circumstances but if I can provide figures if needed.

Any help greatly appreciated from an aspiring landlord.
gl3nnym

jeffo

Dont profit! Spend! I am sure you can find somewhere to spend the money and increase the properties value. Hell why not insure all the white goods, boiler etc. Better than giving it away.
You need to talk to an accountant.
Please bear in mind that your accountant may be quite smart but they drive a Mondeo not a porsche. If they really knew what they were doing.......

gl3nnym

Thanks for the reply jeffo. I was beginning to think there would be none.

There is plenty that we can spend on improving the place but we don't want to find ourselves at too much of a loss. We kind of want to break even but was just looking for some general figures.

A family friend is an accountant and I am going to get him on board to help us out.

jeffo

Wait until the end of the year and only spend your profit. A small loss is no bad thing anyway. I even know people who buy property to make a loss as it saves them elsewhere in tax. I really dont get that myself. If you spend your money on improvements it isnt a loss anyway. Think of it as tranferring money from your current account to your ISA. The money is still there. It is growing too, its just that you cannot access it quickly.

gl3nnym

Good point jeffo, a nice way of looking at it.
Thanks for your advice!

jeffo

I had probably been drinking
:P

rusty_theron11

I want to know about complete residential tax detail of Washington DC
from where i can find it