The decision by the Bank of England to reduce the base rate to 2% last Thursday will prop up the treasury coffers with an additional \u00a3400million. This was the findings of the Young Group, a company providing a service to landlords.<\/p>\n
The firm estimates that each reduction of 0.5% in the base rate will enrich the Chancellors coffers by an extra \u00a380 million coming from taxes paid by landlords.<\/p>\n
Landlords profit on rental income in most cases is taxed at the rate of 40%. This means that the drop from 5.5% to the current 2% rate will generate an additional \u00a31billion of income for landlords. And this could ultimately result in an additional \u00a3400 million in taxes for the government. <\/span><\/u><\/p>\n Did you know?<\/span><\/u><\/p>\n The decision by the Bank of England to reduce the base rate to 2% last Thursday will prop up the treasury coffers with an additional \u00a3400million. This was the findings of the Young Group, a company providing a service to … Continue reading
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\nYoung Group has calculated that about \u00a3136 billion of the outstanding buy-to-let mortgages, 30% being tracker products have seen interest rates drop automatically with the lowering of Bank of England\u2019s base rate.
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