Is it worth keeping my buy-to-let property, or should I sell?
As a higher rate taxpayer I have been advised that these properties are not tax efficient
Q I get rental income of £1,000 a month on a property which is managed by a letting agent who charges me 12% commission (including VAT). After paying tax at 40% I am left with monthly rental income of £528. My two-year fixed-rate interest-only buy-to-let mortgage costs me £300 a month.
I am looking to buy a family home with my partner soon which would be a second property for me. As a higher rate taxpayer, is it financially sensible to keep hold of my first property or should I sell it asap?
Source: Business – The Guardian