The amount of Income Tax Relief some landlords can get on residential property costs was restricted to the basic rate of tax from tax year 2017-18.
|Tax Year||Interest on Tax Return|
Relief is given on the disallowed interest at the current basic rate of tax (20%)
|Loss of Personal allowance||£0||£0||£0||£5,000||£5,000|
|20% Relief on Disallowed Interest||£0||£6,000||£12,000||£18,000||£24,000|
|Class 4 NI|
|Between LPL and UPL (9%)||£2,874||£3,315||£3,413||£3,723||£3,723|
|Above UPL (2%)||£0||£500||£1,073||£1,600||£2,200|
|Total Tax & NI||£8,674||£14,515||£20,846||£31,823||£38,923|
* Tax year 2020-21 has been calculated at the 2019-20 tax rates.
It is important you act before your tax liability reaches £38,923 leaving you with income of only £1,077 per annum.
Click Here to download the current tax year's abacus Tax Tables pdf booklet
Click Here to download the previous tax year's abacus Tax Tables pdf booklet
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