© G Chilvers 2016

John owns 6 houses. He rents them at £160 per week, Total rent £50K per year.

The properties are worth £1M. John has £500K of his own money invested in the portfolio.

John has a £500K mortgage at 4% costing £20K a year in interest payments.

John has running costs and vacancies amount to £12.5K per year.

John’s Gross income is £17.5K per year.

John pays income tax of £1.35K

John’s net income is £16.1K per year.

After the full introduction of the Landlord Tax

John has no extra Landlord tax to pay.

If interest rates rise by 2%

John has to pay £0 in Tax and his net income will be £7.5K.

Small Landlord Example

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