The finance cost will only lower the income to zero therefore if the finance costs are higher then these will be carried forward to be used in the future. This will also apply if your income is not above the personal allowance.
Thank you and is this ever so helpful! So in almost in all cases if you own BTL property under joint personal names as partners, it works best to declare rental income as joint 50:50 income if both the individuals are earning employment salary close to the 40% threshold. Can we also declare in other ratios such as 30:70 or 90:10 to reduce the tax payable and is it mandatory for the rental income to be received to a joint bank account? In terms of deductible expense receipts towards expenses, is it mandatory to hold hard copies?
There are a few points here. The first would be are they a spouse or just a partner. For a spouse you need to complete a form 17 - check out the video on how this works. For partners it would generally follow the legal position on how the ownership has been split.
For expenses you can keep electronic copies of expenses as well and sometimes easier and better. I use a hybrid approach with most being digital and some being paper.
@@kimberleyshapcottpropertytax Thank you. In the case of spouse, Is a declaration of trust required, if the declaration(on form 17) is split equally between the couple please? i.e. 50:50?
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I really appreciated how you explained it so clearly and simply
Your welcome.
great video and your a lot better looking than my accountant !
Thanks.
Great 👍
Thank you 👍
Really helpful video. I wasn’t aware the reduction considers 3 values. What if the rental income is lower than the finance cost?
The finance cost will only lower the income to zero therefore if the finance costs are higher then these will be carried forward to be used in the future. This will also apply if your income is not above the personal allowance.
Thank you and is this ever so helpful!
So in almost in all cases if you own BTL property under joint personal names as partners, it works best to declare rental income as joint 50:50 income if both the individuals are earning employment salary close to the 40% threshold.
Can we also declare in other ratios such as 30:70 or 90:10 to reduce the tax payable and is it mandatory for the rental income to be received to a joint bank account?
In terms of deductible expense receipts towards expenses, is it mandatory to hold hard copies?
There are a few points here. The first would be are they a spouse or just a partner.
For a spouse you need to complete a form 17 - check out the video on how this works.
For partners it would generally follow the legal position on how the ownership has been split.
For expenses you can keep electronic copies of expenses as well and sometimes easier and better. I use a hybrid approach with most being digital and some being paper.
@@kimberleyshapcottpropertytax Thank you. In the case of spouse, Is a declaration of trust required, if the declaration(on form 17) is split equally between the couple please? i.e. 50:50?