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Posted Sun, 26 Jun 2022 21:27:53 GMT by AnthonyTF
I handle my investment portfolio which includes bonds, shares and buy-to-let property. In 21/22 yrs, my bond interest income is £30,000, dividend income is £20,000, rental income from buy-to-let property is £0 with management expenses £10,000. 1) did the management expenses would be carried forward to set off future rental income? 2) the taxable interest income is £30,000-£12,570-£1000=£16,430, but since the starting up interest income is £5,000, then the tax payment for saving should be £11430*20%, am I right? 3) the taxable dividend income £20,000-£2,000, am I right? 4) as I managed my investment portfolio, can I claim for sole trader Thank you!
Posted Tue, 28 Jun 2022 11:51:18 GMT by HMRC Admin 17

Hi,
 
As the management fees result in a loss for your rental income, the loss should be carried forward to be set against any future years profits.

The interest and dividends received will then be the only taxable income and your calculation will automatically grant the relevant exemptions
for the  interest/dividend rate and also calculate the correct rates at which the income will be taxable  .

Thank you.

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