Buy to Let Property Services
Buy to Let Landlord
Example Tax Calculation in 2021
This is a simple, easy to understand example designed to help illustrate the potential benefits of employing a Top-20 Tax Planning accountant’s restructuring platform.
The figures chosen reflect an average and realistic portfolio. Values have been rounded for simplicity, allowing you to extrapolate the results and appreciate the potential order of magnitude of savings.
The Numbers
Base Figures
Portfolio Valuation
01
Purchase Value
£3M
£3,000,000
02
Current Value
£5M
£5,000,000
03
Projected (2021)
£6M
£6,000,000
Forecast portfolio value used in the calculation.
Rental Income
£500,000
per year
Rental Expenses
£10,000
per year
Mortgages
Properties remortgaged to acquire additional properties
Total Outstanding Mortgages
£5,000,000
Across the 10-property portfolio
Mortgage Interest at 2%
£100,000
Per year
Commentary
Calculations from a specialist UK tax accountant
The summary results below are derived from detailed calculations performed by a specialist UK tax accountant in 2021.
This example reflects a relatively modest property portfolio.
The Outcome
The difference restructuring can make
If No Action Is Taken
The landlord would pay approximately
£18,700
more in Income Tax each year by 2021.