All rental income charged at higher rate??

pj9999 · 25-02-2016 10:28PM #1

I'm thinking of giving up my 9-5, and living off rental income from a number of properties I own.

A solicitor said to me that all such income is subject to the higher rate of tax. Can anyone confirm if this could be the case?

Many thanks
P

Stheno · 25-02-2016 10:28PM

No it's not if you are not using your tax credits against other income.

ted1 · 25-02-2016 10:30PM

pj9999 wrote: »

I'm thinking of giving up my 9-5, and living off rental income from a number of properties I own.

A solicitor said to me that all such income is subject to the higher rate of tax. Can anyone confirm if this could be the case?

Many thanks
P

Good thing solicitors are not accountants..,

pj9999 · 26-02-2016 12:09AM

ted1 wrote: »

Good thing solicitors are not accountants..,

Indeed. Strange think for them to say though unless they had some basis for it.

newacc2015 · 26-02-2016 12:17AM

pj9999 wrote: »

Indeed. Strange think for them to say though unless they had some basis for it.

Not at all actually. Most of the big 5 law firms are trying to hire more Business students. They have massive issues with their solicitors being great at law, yet cant read a balance sheet or anything accounting related. Think about it. Four years studying law without studying accounting or any finance subject. Any estate agent has better business knowledge than most solictors.

ted1 · 26-02-2016 12:22AM

pj9999 wrote: »

Indeed. Strange think for them to say though unless they had some basis for it.

I guess most their experience revolves around landlords who work do automatically the income is at the higher rate

dbran · 26-02-2016 06:29PM

Think your solicitor is getting mixed up with rental income for companies which is indeed at the higher rate of corporation tax.

dbran

All rental income charged at higher rate??

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