How to use the portfolio details page

This page describes what each of the portfolio settings means and how to set them correctly to maximise the system's accuracy.


An easy way to differentiate between individual portfolios. Although not used by the system, the more descriptive a name the easier it will be for you to remember what it means.

What type of portfolio is this?

Different rules on taxation and income withdrawal apply depending on whether the portfolio is owned by a pension or by an entity, whether that entity is a company or an individual.

In a normal portfolio, any rental income which is used to repay capital on a mortgage will be taxed at the appropriate tax rate. Any excess rent after this can be withdrawn from the portfolio at any point. Please note that any excess rental income shown on the charts is pre-tax.

In a pension portfolio, no income can be withdrawn from the portfolio until the minimum retirement age, currently 55, has been reached. Excess rental income can still be used, however, to pay off mortgages on other properties within the same pension portfolio, and any repayments on capital are tax-free. Regardless of when the equity in the accelerators passes the value of remaining mortgages on the generators, accelerators in a pension portfolio will never be sold until you reach the minimum retirement age.

In a company portfolio, rental income used to repay capital on a mortgage will be taxed at the corporation tax rate. Capital gains when selling a property will also be taxed at this rate rather than at the capital gains tax rate. Additionally, if the portfolio generates rental income above the weekly salary available without paying National Insurance contributions then it will be liable for taxation at the Employer National Insurance Contributions rate.

Tax rate

The personal marginal tax rate which will be applied to properties in this portfolio. This tax is applicable to capital repayments on mortgages, but not to payments of interest. This only applies to normal portfolios.

Singly or jointly owned

If the portfolio is owned by more than one person then each owner can use their annual exempt amount for capital gains tax purposes, so the annual exempt amount is multiplied by the number of owners.

Tax-free lump sum required on retirement

In a pension portfolio, you are allowed to withdraw a tax-free lump sum once you reach the minimum retirement age, currently 55. If you enter an amount here the system will delay selling the acclerators, if necessary, until there is enough equity in them, after capital gains tax, to pay off any remaining mortgages and this additional amount.

Annual running cost

If there is an annual running cost associated with a portfolio, rather than with a specific property, then this can be paid for out of the excess rental income. When using the option to pool all properties' rental income and pay down the most expensive mortgages first, then this annual running cost will be deducted from the available rental pool before the mortgage repayments are made. When each property is paying off only its own mortgage then it is assumed that the annual running costs will be paid from a source external to the portfolio, which may result in negative rental income showing in the charts.

There are three ways to specify an annual running cost :

  • Fixed amount - the amount entered will be paid in 12 monthly instalments across the year, and will increase in line with inflation.
  • Net percentage - the cost will be the given percentage of the portfolio's total equity ( i.e. the total value of all properties in the portfolio minus the total remaining mortgages on all properties in the portfolio).
  • Gross percentage - the cost will be the given percentage of the portfolio's total value, regardless of any outstanding mortgages.

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