After the newly £1000 mortgage interest only, I am left with £250 before all the expenses and repairs and I am paying Tax on the full rent.
Am I expected to pay Income Tax on no income?
Yes, you are… The rules changed 7 years ago. You can claim a 20% tax credit on mortgage interest so it only really impacts higher rate payers or those close to higher rate band. Quite a lot of people will be paying substantial tax while making a loss.
Are you asking whether you have to pay it - answer yes, or whether its fair - answer no?
sell up and help stitch up the goverment
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Before the interest rise, it was manageable but paying tax on loss is madness! Landlords forced to sell, shortage of rented properties, new rentals higher and higher… what an efficient government!
Can not afford to keep.
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in business you have to know whento stop . You have to make a reasonable profit . The best years for a landlord with no worries is behind us . Let the goverment house everyone. Ha
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