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bimlam

BTL confusion!!!

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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.

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Sounds like you need to hire a better tax adviser.

Edited by Dorkins

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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?

 

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