bimlam Posted May 12, 2017 Share Posted May 12, 2017 Hi I am reading los of confusing things about the future of BTL. Can someone tell me once and for all if it is true that tax will be applied to income, rather than profit, from 202? Various online articles claim that after 2020 everyone's tax bills will go up because they will have to pay tax on the entire rent received. However my tax adviser keeps telling me that there are no changes planned and I will still be able to claim relief and only pay tax on net profit! Which is correct? Also, if my advisor is wrong and I will have to pay tax on full rental income, my plan would be to switch from an interest only mortgage to a full repayment mortgage as there would be no point of using the interest to offset tax and then I can just get on with paying off the capital. Does that sound logical? Thanks Bimlam. Quote Link to comment Share on other sites More sharing options...
Longtermrenter Posted May 13, 2017 Share Posted May 13, 2017 Yes, you are doomed I am afraid. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted May 13, 2017 Share Posted May 13, 2017 (edited) Sounds like you need to hire a better tax adviser. Edited May 13, 2017 by Dorkins Quote Link to comment Share on other sites More sharing options...
Will! Posted May 13, 2017 Share Posted May 13, 2017 Sell up now. Quote Link to comment Share on other sites More sharing options...
Longtermrenter Posted May 13, 2017 Share Posted May 13, 2017 If people on a forum are more clued up than your tax adviser then he isn't a tax adviser. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted May 13, 2017 Share Posted May 13, 2017 20 hours ago, bimlam said: Hi I am reading los of confusing things about the future of BTL. Can someone tell me once and for all if it is true that tax will be applied to income, rather than profit, from 202? Various online articles claim that after 2020 everyone's tax bills will go up because they will have to pay tax on the entire rent received. However my tax adviser keeps telling me that there are no changes planned and I will still be able to claim relief and only pay tax on net profit! Which is correct? Also, if my advisor is wrong and I will have to pay tax on full rental income, my plan would be to switch from an interest only mortgage to a full repayment mortgage as there would be no point of using the interest to offset tax and then I can just get on with paying off the capital. Does that sound logical? Thanks Bimlam. Why are you starting identical threads in different sub-fora? Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted May 13, 2017 Share Posted May 13, 2017 I see the mods have now moved the other thread to sit alongside this one here in Anecdotals. Quote Link to comment Share on other sites More sharing options...
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