www.belowmarketvaluehouses.net

Buy To Let Tax:

Over the years we have dealt with 100's of new buy to let investors and it is a very exciting market to be involved in, even in the present market conditions, but we have seen so many people ignore the tax implications and planning that is needed to run a smooth portfolio, leading to sleepless nights of worry!

Firstly, get yourself a good accountant from day one, always ask when searching for a good accountant, their experience in dealing with property tax, try and find one who possibly specializes in this area. They will be able to give you all the information you need to get things right from the start, what information you need for returns etc and the best software to use for your own situation, remember, income tax is due on all net income from a rented UK property which needs to be declared on your tax returns.

If you are married, your accountant should also be able to organise the best way of splitting rental income between you both to take advantage of personal allowances.

Your net income is the rental income minus Claimable expenses:

Claimable expenses include:

Mortgage Interest: (Does not include Capital repayment, the split is normally shown on your mortgage statement)

Property Insurance:

Solicitors fees and accounting fees:

Letting agency fees:

Maintenance costs:

Replacement of fixtures and fittings:

(Any work carried out which would be classed as "Improvement" is not allowable)

Service charges:

Ground Rent:

Advertising costs to let the property:

Insurance cover for boilers and electrical appliances:

There are some expenses not allowed for income tax that you can get tax relief for when you sell the property and this falls within Capital Gains Tax, this is another area where a good accountant can save you some hard earned cash, so choose wisely!!

www.belowmarketvaluehouses.net:  72 OVERCHURCH ROAD, UPTON, WIRRAL. CH49 4NN TEL: 07919 117015