Can anyone clarify how the Income Levy is dealt with in the case of invest property

[Westgolf]

Hello all,

I dont know if this topic has been covered elsewhere -- mods please feel free to redirect if necessary -- but can anyone clarify how the income levy is to be dealt with in the case of an investment property. I understand that the levy can be calculated as part of the profit / loss calculation on the particular property but (1) where exactly ? and (2) if I have an operational loss on the property for the year in question and I add on the levy as a cost,further increasing the loss, where do I stand with regard to the liability for the levy ?

Westgolf

 

[z104]

Re: Can anyone clarify how the Income Levy is dealt with in the case of invest proper

1) I just take the % off the top. If the rental income is 8000 then the levy is a percentage of this.
I could be wrong but the levy is based on income so I think you have to pay it whether you make a profit or loss.

2) You have to pay the levy regardless.

 

[BaileyMc]

Re: Can anyone clarify how the Income Levy is dealt with in the case of invest proper

The income levy would be payable on the net rental income before any capital allowances or losses carried forward.

By this I mean the gross rent received less any allowable expenses (repairs, mortgage interest - as restricted wef from 2009, etc.) but before the annual allowances for capital expenditure (fit out etc.) and any rental losses carried forward (including s23).