USC on rental income

[Mort.Switcher22]

Hi, I have a query on the USC charge 2021 in relation to rental income. If ur PAYE income is greater than 70k is all the USC charge on the gross rental income at 8%? Thanks

 

[fidelcastro]

Hi, I have a query on the USC charge 2021 in relation to rental income. If ur PAYE income is greater than 70k is all the USC charge on the gross rental income at 8%? Thanks

Presume its on whatever total income you have which exceeds 70k. Can you distinguish your rental income from salary to say which part was <70k and which is >70k. No. Income is income, from whatever source e.g. dividends, rental, salary .

 

[Mort.Switcher22]

Thanks for coming back, my salary is over 72k so the rental income of 6k gross is on top of this..think its all at the top USC rate of 8%

 

[torblednam]

USC isn't charged on your gross rent, it's charged on the net rental income i.e after deducting relevant expenses eg. interest, repairs etc...

 

[Mort.Switcher22]

Thanks for the above, thought it was charged on the gross rental income, that's a good saving..