An Income levy Question

Hello All,

with the recent imposition of the 1% income levy I have a query relating to income from an investment property.

The property presently does not cover its costs i.e I will make a loss for the year, which I will carry forward to next year.My query is this, If I include the 1% levy as an expense then my loss for the year increases and I have no liability for the 1% levy ? ? OR am I liable for 1% of the gross rental income recieved, whether I make a profit or loss for the year.

all info welcomed

Westgolf

All levies are raised on taxable income.
If you have made a loss, then no tax or levies on this.

Domo,

Thank you for clarifying topic, much appreciated,

Westgolf.

Hope you don't mind me asking, but how did you make a loss if you're renting it out?
Could be useful info for other landlords.

umop3p!sdn said:

Hope you don't mind me asking, but how did you make a loss if you're renting it out?
Could be useful info for other landlords.

Click to expand...

I presume the total mortgage interest, repairs, management fees, etc came to more than the rental income.

Levy is only applicable on the profit, not the rental income.

Hi folks

Just to clarify the situation. I own a 3 bed townhouse which was originally furnished and finished to a high standard. When I went to rent it out I was very very lucky with the tenants I got for it. They are long term, no problems with rent,keep the place spotless, dream tenants really.

In return for all this I keep the place very well, probably better than most of the other neighbouring let houses in the estate. I keep it well maintained basically to the standard it was in when the tenants first moved in.I am fully tax compliant in this situation.

I have a carry forward from the year of purchase of 1/8 of the costs of fit-out plus I pay the management fee plus I insure the building and also have P.L. on it. This along with the mortgage interest means that I pay out more than the property brings me in rental income,hence the loss.

However I must also point out that I am taking a longer term view vis-a-vis the quality of the sitting tenant in place and the benefits acruing.

Hope this clarifies the matter, any questions welcome

Westgolf