reinvestment

by **flipflop13** on Thu Nov 10, 2011 11:04 pm

hello, first post so pls talk simply to me

We have several btl properties and are blessed with low int rates. We have made a profit, which will mean my tax credits etc will be reduced. Is there any way we could use the profits from BTL(around 10k) to reinvest, allowing us to reduce our profit by buying another property?
I would use the 10k as a deposit for the new BTL mortgage
or any other suggestions
many thanks

by **mullet** on Fri Nov 11, 2011 9:34 am

flipflop13 wrote:hello, first post so pls talk simply to me

We have several btl properties and are blessed with low int rates. We have made a profit, which will mean my tax credits etc will be reduced. Is there any way we could use the profits from BTL(around 10k) to reinvest, allowing us to reduce our profit by buying another property?
I would use the 10k as a deposit for the new BTL mortgage or any other suggestions
many thanks

Is this for real? In case it is ...

1. Use the £10K profit as income. That is what people do - they live off their income.
2. Reduce or cancel your tax credits claim. TCs are there for people who need them.

by **Generix** on Fri Nov 11, 2011 1:12 pm

mullet wrote:
flipflop13 wrote:hello, first post so pls talk simply to me

We have several btl properties and are blessed with low int rates. We have made a profit, which will mean my tax credits etc will be reduced. Is there any way we could use the profits from BTL(around 10k) to reinvest, allowing us to reduce our profit by buying another property?
I would use the 10k as a deposit for the new BTL mortgage or any other suggestions
many thanks
Is this for real? In case it is ...

1. Use the £10K profit as income. That is what people do - they live off their income.
2. Reduce or cancel your tax credits claim. TCs are there for people who need them.

I'm also deeply confused...

You have a btl property, do you also have another property which you live in?

If so how on earth is it possible to be receiving tax credits?

by **flipflop13** on Fri Nov 11, 2011 5:18 pm

hi am a bit scared to post now.............

i get WTC, with child and disability element and have recently become self emplyed, i have not made a profit yet on the business and have so far always spent more on the BTL than i have received in rent.
my income is therfore very low, if i make the profit on the btl this year as i understand it i will lose the WTC and benefits such as help with childcare, which means i wont be able to afford to work and the cycle starts again .............

i am really trying to become free from help, non just sitting painting my nails :roll:

and yes it is for real

by **Peter D** on Fri Nov 11, 2011 7:12 pm

The income (Profit) from the rental properties is subject to Income tax. If you are married then 50/50 unless you have formally arranged otherwise. Reinvestment does not help your situation. Are you sure you should be claiming WTC. Regards Peter

by **Incredulum** on Mon Nov 14, 2011 11:37 am

You own multiple properties and are on benefits!!!!!

This thread should be reported to the benefits scroungers authorities whom I trust would chase up your details from taxationweb.