Comments on: Northern Rock Has Passed On A 0.25% Cut To Their Standard Variable Rate http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/ DOCUMENTING ONE MAN'S JOURNEY TO BECOMING A PROPERTY MILLIONAIRE Thu, 09 Feb 2012 02:45:59 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Daniel Harrison http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-48153 Daniel Harrison Tue, 03 Feb 2009 20:11:01 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-48153 Yep, that completely makes sense now... especially as it matches what I thought. :) Cheers! Yep, that completely makes sense now… especially as it matches what I thought. :) Cheers!

]]> By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-48151 The Landlord Tue, 03 Feb 2009 20:09:14 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-48151 Ahh sorry, I confused myself then also ha. The money you make from rental income should be taxed by normal income tax levels. If you sell the BTL property, the profit should be taxed at capital gain tax levels. Sorry, I replied to your question quickly as I was leaving work. Hope that makes more sense! :) Ahh sorry, I confused myself then also ha.

The money you make from rental income should be taxed by normal income tax levels. If you sell the BTL property, the profit should be taxed at capital gain tax levels.

Sorry, I replied to your question quickly as I was leaving work. Hope that makes more sense!

:)

]]> By: Daniel Harrison http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-48148 Daniel Harrison Tue, 03 Feb 2009 19:12:15 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-48148 Sorry, not quite that clear! I've only got 1 property, my flat which I am letting out whilst living with my gf. So is it Income Tax paid on rental income? Or CGT on rental income? DirectGov suggests it's Income Tax. http://tinyurl.com/3m55cy Cheers Dan Sorry, not quite that clear! I’ve only got 1 property, my flat which I am letting out whilst living with my gf.

So is it Income Tax paid on rental income? Or CGT on rental income?

DirectGov suggests it’s Income Tax.
http://tinyurl.com/3m55cy

Cheers
Dan

]]> By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-48143 The Landlord Tue, 03 Feb 2009 18:22:58 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-48143 Hey Daniel, Yup, the profit should get taxed at standard income level- capital gain tax (CGT). More about that over at <a href="http://www.propertyinvestmentproject.co.uk/blog/2007/03/05/tax-on-rental-income-cgt/" rel="nofollow">Tax On Rental Income (CGT)</a> But if you have multiple properties, it might be worth registering yourself as a property letting company, and then you can get the advantages of other tax reductions. It can get really complicated then, in which case I advice seeking professional advice from an accountant :) Hope that helps. Many thanks! Hey Daniel,

Yup, the profit should get taxed at standard income level- capital gain tax (CGT). More about that over at Tax On Rental Income (CGT)

But if you have multiple properties, it might be worth registering yourself as a property letting company, and then you can get the advantages of other tax reductions. It can get really complicated then, in which case I advice seeking professional advice from an accountant :)

Hope that helps.
Many thanks!

]]> By: Daniel Harrison http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-48137 Daniel Harrison Tue, 03 Feb 2009 16:39:47 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-48137 Yeah, overpaying off the capital when you can afford it at the moment will help keep costs when rates do go up again. Given that interest is a pure cost, i.e. 'wasted' money, it's well worth paying as much as possible. Got one question for you... when you make a profit from letting a property, that profit is taxed at standard income tax levels (20 or 40%)? Anything else? like class 4 NICs? (BTW, your site is a great resource, cheers!) Cheers! Dan Yeah, overpaying off the capital when you can afford it at the moment will help keep costs when rates do go up again. Given that interest is a pure cost, i.e. ‘wasted’ money, it’s well worth paying as much as possible.

Got one question for you… when you make a profit from letting a property, that profit is taxed at standard income tax levels (20 or 40%)? Anything else? like class 4 NICs?

(BTW, your site is a great resource, cheers!)

Cheers!
Dan

]]> By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-47824 The Landlord Thu, 29 Jan 2009 13:37:43 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-47824 All adds up, that's for sure :) All adds up, that’s for sure :)

]]> By: Fiona L http://www.propertyinvestmentproject.co.uk/blog/northern-rock-has-passed-on-a-025-cut-to-the-standard-variable-rate/comment-page-1/#comment-47821 Fiona L Thu, 29 Jan 2009 12:40:16 +0000 http://www.propertyinvestmentproject.co.uk/blog/?p=995#comment-47821 ooooooooooo That is good news, not amazing news but its better than a slap in the face. :) ooooooooooo That is good news, not amazing news but its better than a slap in the face.
:)

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