Top-Rated Landlords and Property Tax Accountant in London
What is property income for tax purposes
UK rental income, overseas rental income and income from leases (selling, extending, variation, granting at undervalue)
What are my tax obligations
Each year, you need to calculate your profits, complete a self-assessment tax return and pay tax (normally by 31 January)
Jointly owned property
Each owner has to pay tax on on their share of income. The same applies to a husband and wife.
Property tax reliefs
_____________________________________
A taxpayer can reduce the tax payable by taking advantage of the tax reliefs available. It is important to navigate this carefully because there are a number of traps. For example, tax relief on interest is restricted and expenditure on extending a property is not immediately tax deductible.
Property losses
Property losses can be set off against property income. Excess losses can be carried forward against future property profits. Property losses cannot be set off against your general income.
Expenses
Any expenses you incur in the property lettings business are tax deductible. Special rules apply to capital expenditure, bad & doubtful debts, entertainment, gifts, expenditure on "integral features" and interest.
Interest
Finance costs for residential properties are restricted to 20%. This means you could end up with a tax charge, even if you haven't made a profit.
Rent a room
If you let a furnished room to a lodger in your main residence, you are entitled to tax relief on the first £7,500. You cannot deduct expenses from this amount.
I've been using lancing Cotswold, to complete accounts for my buy to let properties. Always on point with meeting deadlines and helps save me money 💰. Really knowledgeable with the accountancy world, worth every penny.
Mr I
What about capital gains tax on property?
_______________________________________
When you sell a property, any profit you make will generally be taxable at 28%. Selling, transferring or gifting property are all "taxable" events, even if no money changes hands.
Investment property(s)
Tax is paid on the difference between the selling price and the price you purchased the property. You have 60 days to report and pay the tax to HMRC.
Inherited property(s)
Tax is paid on the difference between the selling price and the price you inherited the property. The valuation of property at death can often be a subjective area.
Gifting property(s)
Most gifts are between families and the "market value" rule will apply on the discount. This means the discount can be subject to tax.
Capital gains tax reliefs
_______________________________________
Annual exemption
The first £10,600 of any gain is tax free. If property is owned jointly then both taxpayers get this relief against their share of the profits.
Capital expenditure
Any expenditure that didn't qualify for tax relief when you were renting the property, could apply now.
Main residence relief
Significant tax relief is available if you occupied the property as your home at any time through the ownership period.
Furnished holiday lettings
Special rules apply for commerical letting of a furnished holiday home. The tax rate could be as low as 10% and "roll-over" relief could be available.
Read our blogs on topical capital gains tax issues and question from clients
Posted 22nd February 2023
Posted 1 year ago
By Unknown
Capital gains tax
Claiming Principal Private Residence Relief
If you’re selling a property, Principal Private Residence Relief (PPR) needs to be on your radar. Talk to us about how PPR can reduce or eliminate your capital gains tax liability. #property #tax
Read More
Posted 13th February 2022
Posted 2 years ago
By Unknown
Capital gains tax
Company share buybacks
Shareholders fallen out? Time to retuire? Talk to us. We’ll help you factor in the most tax efficient ways to conduct the buyback, both for the company and your shareholder. #tax #sharebuyback
Read More
Posted 18th January 2022
Posted 2 years ago
By Unknown
Capital gains tax
Capital gains tax for directors
Planning on selling any large assets? We’ve got everything you need to know about Capital Gains Tax (CGT) and the impact it can have on your wealth planning as a director. #tax #accounting #cgt
Read More
Posted 5th January 2022
Posted 2 years ago
By Unknown
Capital gains tax
Tax implications of selling a business
Thinking about disposing your business? Talk to us and find out if you’re eligible to pay capital gains tax of 10% #BADR #tax
Read More
Posted 25th November 2021
Posted 2 years ago
By @Lancing.Cotswold
Capital gains tax
Capital Gains Tax on property | London accountants
Thinking about disposing a residential property? We’ll help you understand the Capital Gains Tax (CGT) implications and tax reliefs available to you. #capitalgainstax #property #accounting
Read More
Posted 25th June 2021
Posted 3 years ago
By Lancing Cotswold Accountants and Tax Advisers
Capital gains tax
Seed Enterprise Investment Scheme tax relief for investors
SEIS is designed to help your company raise money when it’s starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in your company.
Read More
Posted 22nd June 2021
Posted 3 years ago
By Lancing Cotswold Accountants and Tax Advisers
Capital gains tax
Enterprise Investment Scheme tax relief for investors
The Enterprise Investment Scheme tax relief for investors is a highly tax efficient investment. Find out why #tax #eis tax #eis tax relief
Read More
Contact us
Property capital gains tax
Tax investigations
Self assessment
