© G Chilvers 2016

Bob owns 90 furnished flatlets in 4 licenced HMO buildings. He rents them at £75 per week, including Heating. Total rent £350K per year.

The properties are worth £4.5M. Bob has £1.5M of his own money invested in the portfolio.

Bob has a £3m mortgage at 4% costing £120K a year in interest payments.

Bob has running costs and vacancies amount to £70K per year.

Bob’s Gross income is £160K per year.

Bob pays income tax of £58.1K equalling 36.3% of his income.

Bob’s net income is £101.8K per year.

After the full introduction of the Landlord Tax

Bob has to pay an extra £30K in Landlord tax bring his tax bill to £88.1K being 55% of his income.

Bob’s net income for £1.5M invested and running 90 Flatlets for a year is £71.8K.

If interest rates rise by 2%

Bob has to pay £68.2K in Tax and his net income will be £14.2 having been taxed @ 82.75%.

Medium Landlord Example

Click to Download Medium Landlord Calculations Medium Landlord results in PDF format