Extracting equity from a B2L

[SandyD]

At the moment I'm not entirely sure how the tax reduction will work and whether it will be available against any tax due on the rental or against total tax. The later sounds quite generous but I'm thinking it will be the former which means high rate tax payers with rental properties making a loss could be significantly worse off it the tax reducer isn't available to carry forward.

Hope this helps

Martin
Contratax Ltd

Are you sure you didn't the other way around?
So if one is higher tax payer his income would be increased by the amount of rental income (eventually when no interest offset is deducted) and therefore paying the 45% tax on all incomes

[ContrataxLtd]

Are you sure you didn't the other way around?
So if one is higher tax payer his income would be increased by the amount of rental income (eventually when no interest offset is deducted) and therefore paying the 45% tax on all incomes

I was specifically talking about loss making rental properties in that post. Currently any losses are available to carry forward and offset against future profits. However, when the changes come in I'm not sure how the whole tax reducer will work but it may mean that people with loss making rentals lose out even further.

Martin
Contratax Ltd