Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Finance | Taxes


Sole property ownership can save on property income tax

By: Amer Siddiq

The ideal scenario for buying a property as a sole owner is if you have no income.
The reason for this is because you can utilise you annual tax free personal allowance, which is currently set at £5,035.
However, in the unlikely case of you having zero income, then it is still worthwhile owning property in a sole name if you are not a higher rate tax payer i.e. you do not pay tax at 40%.
In simple terms, the further your income is away from the higher rate tax band, then the more you will save in income tax by having the property in your sole name.
This is especially true if your partner is a higher rate tax payer.
The following two case studies will illustrate these points.
Case Study
Joanne is married woman but does not work.
Her husband is a high flying executive who earns £70,000 per annum.
Upon the death of a relative she is left £70,000.
She uses this whole amount to purchase a property.
She makes £380 rental profit per month. (Her expenditures are low as she bought the property with straight cash s o therefore shy has no outstanding mortgage).
This means that she makes an annual rental profit of £4,560.
She is not liable to pay any tax on this amount as it is within the annual personal income tax allowance of £5,035.

Case Study
Lisa is a married woman and earns £15,000 per annum as a store sales assistant. Her Husband is a hotel manager and earns £45,000 per annum.
They decide that they want to start investing in property and purchase a property for £45,000.
They take tax advice before investing and are told that they will pay less annual income tax if the property is purchased in the sole name of Lisa.
This is because she is not a higher rate tax payer.

Article Source: http://www.articlesnatch.com

About the Author:
Amer Siddiq is founder of the Property Tax Portal . The website is dedicated to helping landlords, investors and accountants lower their property taxes .

Tags: , , , ,
| Print | Ezine Ready | |

Please Rate this Article

Recent Taxes Articles

Today's Hot Articles

Comments

Search Ebay

Still can't find what you are looking for? Search for it!

Add to Google
ArticleSnatch Authors:
Member Login Sign Up Submit Articles Learn More Submission Guidelines Top Authors
For Publishers:
Most Popular Articles Ezine Notifications Article RSS Feeds Terms of Service
For Everyone:
Blog About Us Link to Us Contact Us New Stuff Link Directory Privacy Policy Sitemap Resources
Our Sites:
Free Magazines Book Your Hotel Stay Free MySpace Tools Massive Video Collection MJE Sales, LLC Blog MyWorldPlus Discounts Freedom Rocks MJE Sales, LLC
Stay and Watch a Video:
Click here to submit your free, permanent ads to TheFreeAdForum.com!

Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.