Learn to earn more…

2015 Budget Announcement

Budget Announcement

Withholding CGT

Mortgage Interest

Relief Cap

Corporate Tax

Increase SDLT

Develop your knowledge and turn your passion into profits.

Wear & Tear Allowance

Make more money & pay less tax on your property

portfolio

o Mortgage tax relief set to a maximum of 20% (from 2017)

o Jane is a high rate tax payer (employed)

o £12,000 incomeo £8,000 Mortgage interesto £4,500 repairs costso £1,000 property management fees

o (£1,500) loss per year (higher if repayment mortgage)

High rate tax payers – 40% / 45%

Develop your knowledge and turn your passion into profits.

Make more money & pay less tax on your property

portfolio

oJane is a high rate tax payer (employed)

o£12,000 incomeo£8,000 Mortgage interesto£4,500 repairs costso£1,000 property management fees

o(£1,500) loss per year o£4,000 add back 20% interest limito£2,500 taxable profit (taxed at 40%)o£1,000 tax to pay despite Jane making £1,500 loss

High rate tax payers – 40% / 45%

Develop your knowledge and turn your passion into profits.

Budget Announcement

Withholding CGT

Mortgage Interest

Relief Cap

Corporate Tax

Increase SDLT

Develop your knowledge and turn your passion into profits.

Wear & Tear Allowance

3% Additional SDLT

Develop your knowledge and turn your passion into profits.

3% Additional SDLT

Develop your knowledge and turn your passion into profits.

oHouse purchased above £40,000 must pay 3% SDLT

oHouse purchase at £150,000

o 2% SDLT for most peopleo 5% for people buying buy to lets

Budget Announcement

Withholding CGT

Mortgage Interest

Relief Cap

Corporate Tax

Increase SDLT

Develop your knowledge and turn your passion into profits.

Wear & Tear Allowance

10% wear & tear on furniture

oMust be fully furnished

o Beds o Furnitureo Curtainso White goodso Sofa, chairs, tableso Cabinets and cupboards

Removed from April 2

016

Develop your knowledge and turn your passion into profits.

Example: 10% wear & tear on furnitureo£12,500 rental income

o(£8,000) mortgage interesto(£1,500) property management feeso(£2,200) Repair costs

o£800 profito(£1,250) 10% wear & Tear allowanceo£450 losso£0 tax

Develop your knowledge and turn your passion into profits.

Budget Announcement

Withholding CGT

Mortgage Interest

Relief Cap

Corporate Tax

Increase SDLT

Develop your knowledge and turn your passion into profits.

Wear & Tear Allowance

People with limited companies

o Corporation tax rate reduction to 18%

Develop your knowledge and turn your passion into profits.

People with limited companies

Now 2017 2020

20% 19% 18%

• Corporation tax rates

Develop your knowledge and turn your passion into profits.

People with limited companies

Now 2017 2020

Profits £100,000 £100,000 £100,000

Tax Rate 20% 19% 18%

Tax £20,000 £19,000 £18,000

o Example £100,000 profit (20% same as personal tax rate)

Develop your knowledge and turn your passion into profits.

Budget Announcement

Withholding CGT

Mortgage Interest

Relief Cap

Corporate Tax

Increase SDLT

Develop your knowledge and turn your passion into profits.

Wear & Tear Allowance

Withholding CGT

Develop your knowledge and turn your passion into profits.

Withholding CGT

Develop your knowledge and turn your passion into profits.

Tax remedy pills

Allowable costs + 3Rs

Develop your knowledge and turn your passion into profits.