UK Landlord Forum / Life

Due to the changes to taxation for landlords and the forthcoming EPC rules I have had to tell my tenants that I will be selling the property. It just doesn't seem worth it any more. I feel so sorry for them because a) there are barely any rental properties on the market and b) if they did find somewhere they would need to pay almost 50% more than I'm charging.

I've been searching for an answer to the statement in the title of my post but haven't received a concrete answer. If I increase my pension contributions by the amount of my income (including rental income) currently above the higher tax threshold will I only have to pay 20% tax on the rental income?

Quote from: Landlordlife321 on February 12, 2023, 08:40:38 PMDue to ... and the forthcoming EPC rules I have had to tell my tenants that I will be selling the property.

I know this isn't a direct answer to your question... but I wanted to check you understood any upcoming rules would be for new tenancies. If your Tenants were long-term, good payers, and weren't that bothered about EPC, then it's perfectly viable to just leave it running... then, one day, it'll become empty and you can sell in a less fraught way.

As I say, just checking on that specific bit... this may be noise level for you, granted.

Quote from: Landlordlife321 on February 12, 2023, 08:40:38 PM
If I increase my pension contributions by the amount of my income (including rental income) currently above the higher tax threshold will I only have to pay 20% tax on the rental income?

Broadly speaking, yes: you get tax relief on your pension contributions at your marginal rate of tax. There is an annual limit but I wouldn't have thought you'd get anywhere near it.

Quote from: Hippogriff on February 13, 2023, 10:17:27 AM

Quote from: Landlordlife321 on February 12, 2023, 08:40:38 PMDue to ... and the forthcoming EPC rules I have had to tell my tenants that I will be selling the property.

I know this isn't a direct answer to your question... but I wanted to check you understood any upcoming rules would be for new tenancies. If your Tenants were long-term, good payers, and weren't that bothered about EPC, then it's perfectly viable to just leave it running... then, one day, it'll become empty and you can sell in a less fraught way.

As I say, just checking on that specific bit... this may be noise level for you, granted.

Hi, yes, I can see how my post came across that way. Yes, I know the EPC changes aren't coming in just yet. There's a weird problem with the chimney leaking. It's been repaired about four times but seems to last about 14 months then it happens again. Very strange. Every tradesman has said "you won't have any problems with this now" then it happens again. It's just happened again and is like the last straw. Mortgage will be coming up for renewal at the end of the year too so I've just thought now is probably the time.

Quote from: Simon Pambin on February 13, 2023, 01:51:18 PM

Quote from: Landlordlife321 on February 12, 2023, 08:40:38 PM
If I increase my pension contributions by the amount of my income (including rental income) currently above the higher tax threshold will I only have to pay 20% tax on the rental income?

Broadly speaking, yes: you get tax relief on your pension contributions at your marginal rate of tax. There is an annual limit but I wouldn't have thought you'd get anywhere near it.

If your employment  and rental income came to say £60k and you put £10k into your pension what would this look like on your tax return? I've been looking for online calculators but haven't found any that can spell it out for me. Sorry for the dumb question