|
2016/17 |
2017/18 |
2018/19 |
2019/20 |
2020/21 |
|
£ |
£ |
£ |
£ |
£ |
Other Income |
15,000 |
15,000 |
15,000 |
15,000 |
15,000 |
Rental Profits BEFORE tax adjustments |
24,000 |
24,000 |
24,000 |
24,000 |
24,000 |
Total Income |
39,000 |
39,000 |
39,000 |
39,000 |
39,000 |
Add Back – Residential Letting Finance Costs |
- |
30,000 |
60,000 |
90,000 |
120,000 |
Personal Allowance |
( 11,000) |
( 11,500) |
( 11,500) |
|
- |
|
28,000 |
57,500 |
87,500 |
129,000 |
159,000 |
Total Income Tax |
5,600 |
16,300 |
28,300 |
44,900 |
57,350 |
Rent Finance Tax Credit (20%) |
- |
( 6,000) |
( 12,000) |
( 18,000) |
( 24,000) |
SA Tax Bill |
5,600 |
10,300 |
16,300 |
26,900 |
33,350 |
|
|
|
|
|
|
Benefit/(Cost)
on Base Year: |
|
( 4,700) |
(10,700) |
( 21,300) |
( 27,750) |
|
|
|
|
|
|
Note:
the most recent figures for tax allowances and bands are used, where known. |
|
2016/17 |
2017/18 |
2018/19 |
2019/20 |
2020/21 |
|
£ |
£ |
£ |
£ |
£ |
Other Income |
15,000 |
15,000 |
15,000 |
15,000 |
15,000 |
Rental Profits BEFORE tax adjustments |
24,000 |
24,000 |
24,000 |
24,000 |
24,000 |
Deduct One-off Expense in one
of the years: |
(20,000) |
(20,000) |
(20,000) |
(20,000) |
(20,000) |
Total Income |
19,000 |
19,000 |
19,000 |
19,000 |
19,000 |
Add Back – Residential Letting Finance Costs |
- |
30,000 |
60,000 |
90,000 |
120,000 |
Personal Allowance |
( 11,000) |
( 11,500) |
( 11,500) |
( 7,000) |
- |
|
8,000
|
37,500 |
67,500 |
102,000 |
139,000 |
Total Income Tax |
1,600 |
8,300 |
20,300 |
34,100 |
48,900 |
Rent Finance Tax Credit (20%) |
- |
( 6,000) |
( 12,000) |
( 18,000) |
( 24,000) |
SA Tax Bill |
1,600 |
2,300 |
8,300 |
16,100 |
24,900 |
|
|
|
|
|
|
Benefit/(Cost) on Base Year in this example: |
|
( 700) |
(6,700) |
(14,500) |
( 23,300) |
|
|
|
|
|
|
Original Example without £20,000 cost |
|
( 4,700) |
( 10,700) |
( 21,300) |
(
27,750) |
|
|
|
|
|
|
Net savings |
|
4,000 |
4,000 |