As of 6 April 2017 the tax relief landlords receive for mortgage interest and other finance costs is restricted. The restriction is being introduced gradually so that by 2020/21 landlords will receive tax relief for finance costs at basic rate (currently 20%) instead of at the rate at which they pay tax. This change does … Continue reading To Have, Hold & Share Rental Income Tax Efficiently
When you let a property to a third party for a market rent it should be relatively straightforward to calculate your taxable rental income, or loss if applicable. A market rent is that which a landlord can expect to receive in accordance with rents charged for similar properties in the same area. If your rental … Continue reading Mates Rates – Letting your property at below Market Value
From 6 April 2017 the relief that Landlords receive for mortgage and loan interest on residential lettings will be restricted. It marks a big change for Landlords as it is estimated that one in five will be affected by the policy. Under the new rules, by 2020/21, finance costs will no longer be deducted from the … Continue reading Landlords: Is your Tax on the Up from April 2017?
After our first very successful event of the year held in January, we are now well into 2017 and preparing to welcome our Landlords to our next FREE forum on Wednesday 29th March between 6pm and 8pm at The Parkway Hotel and Spa. We are continuing to provide a broad range of speakers who can … Continue reading Gwent Landlord Forum – 29 March 2017
If you’ve incurred qualifying expenditure at some time prior the letting of your rental property, you can still offset this expenditure against rental income (once it’s received) as long as it meets certain criteria. You cannot claim for expenses, such as repairs or council tax bills, which you paid while the property was your private … Continue reading Landlords: Have You Claimed Your Pre-letting Expenditure?
When a business is operated through premises that are owned or let by the business, claiming for rent, rates and utilities, etc., is all relatively straightforward. However, when the business is run from the home of the proprietor or director (if a limited company), then the expense claim requires a little more thought. If you … Continue reading Tax Relief When Home is The Office
Spouses or civil partners who receive rental income should consider the way in which the rental income is split in accordance with their prospective tax rates. For example if, before rental income, Mrs Jones is a higher rate tax payer and Mr Jones is a basic rate taxpayer, it may be more tax efficient for any … Continue reading To Have & To Hold (& Split Rental Income Efficiently)
In the budget last Summer, The Chancellor announced that landlords will no longer be able to deduct 100% of their mortgage or loan interest costs from their rental income to calculate assessable profit. Instead they will be able to claim the interest amount as a basic rate reduction from their tax liability. This means that … Continue reading Changes To Interest Relief For Landlords
Rental income does have to be disclosed to HM Revenue and Customs but whether or not you have to complete a tax return to disclose the income will depend on your circumstances. You will not need to complete a tax return if: The gross rental income is below £10,000 per annum, and The net rents … Continue reading Receiving Rental Income: Should You Be Completing A Tax Return?