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By to Let and Tax Implications

(3 Posts)
BlueThursday Sun 23-Jun-13 14:50:57

Hi there, long time lurker seeking some advice please.

DH and I have a mortgage for which I get a staff rate. For this my tax allowance is greatly reduced. My DH, however, has a generous tax allowance due to doing uniform laundry and such like.

We are thinking of converting our current home into a BTL and buying another home for ourselves. Would it be worthwhile staying with my employer for this plus new mortgage or will my BIK become too great and hammer my tax?

Also, would it be best to have everything in my name for any potential BTL to keep DHs salary optimised ie not fall into 40% tax bracket?

Thanks in advance!

riksti Sun 23-Jun-13 14:57:23

Definitely better to have it all in your name if your husband is close to 40% bracket and you are not.

If you have a low interest loan from your employer and use it for a BTL property the loan won't actually become a benefit in kind. there is a section in the legislation that states that where the interest would be fully deductible against income (which it would be as a BTL interest) then no benefit is due. I'm not sure what information your employer needs to ensure they don't need to enter it on the P11d, though.

BlueThursday Sun 23-Jun-13 15:07:09

Appreciated thanks smile

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