Questions related to property rented out

[pozzydrive]

Hi

My partner and I have been totally confused about this new Landlord tax and rules around being a landlord, if someone is kind enough to answer me, can you please explain it as simply as possible.

1. Is this correct, next year my partner can only deduct 75% of her mortgage costs against tax owed, the following year 50%, 25% in the third year and finally in the fourth year, nothing, then she has to pay the full 20% tax on the rent, is that right.

2. Cost of any repairs, will she still be able to claim them against tax on the rent or is that also being phased out.

3. Regarding capital gains tax, is this only paid on the difference between the gain and what was originally paid for it, or is there capital gains tax on the total price it is sold for and at what rate will the capital gains tax be. FYI my partner is not in the higher tax bracket.

[maths]

1. 2017/18 75% of finance costs deductible and 25% of the costs get a 20% tax credit.

Thereafter for each subsequent tax year the corresponding % figures are 50%/50%; 25%/75%; 0%/100% (2020/21).

2. Wear and tear allowance withdrawn for tax year 2016/17 and later. Replaced with replacement domestic items relief.
Repairs available for fixtures in the property (eg roof; integrated kitchen appliance).

3. CGT payable on difference between sales consideration less original cost.

[pozzydrive]

Maths

Thank you, that is easier to understand.

One thing though, say we have to replace two or three fence panels in the garden because of damage caused by wind or wood rot, is that classed as a repair, also the bathroom, leaks in pipes and the floor collapses as a result of those leaks overtime, all having to be repaired or replaced, is this considered as repairs and therefore are we able to claim for them, is that correct?

Regards

Pozzy