Landlords tax?

[HoliHormonalTigerlilly]

We have an opportunity to own half of a property with my BIL. We could rent it out and share any proceeds.

Our FA says that taxes make this a waste of time & we'd be better off paying off more of our own mortgage.

If taxes make renting out properties a worthless endeavour, then why does anyone do it?

Am I missing something?

The entire rent is taxed as though it were income. You can no longer deduct the cost of any mortgage. You can still deduct eg estate agent fees, cost of upkeep, but not a mortgage.

DP rents out a property he had before we met and he thinks that it now costs him £100/month to do this, ie he loses £100/month rather than makes a profit.

Now the exact balance will depend upon rent, mortgage, tax bracket etc but it is certainly not as lucrative as it was.