Tax On Property
Whether you're thinking of buying, already letting or considering selling a property, getting the right tax advice is crucial.
Letting residential investment property is treated as running a business - even if you only let out one property. And if you let out more than one property in the UK, they'll all be treated as one single business.
You must normally pay income tax on any profit from renting out property you own. Put simply, your profit is the sum left once you’ve added together your rental income and deducted any allowable expenses or allowances.
Your tax return
If you don't already receive a tax return, you must notify HMRC and will usually need to fill in a tax return to report your income and any gain or loss made on selling a property
The deadline for making an online tax return is 31 January.
Tax Planning - Getting it right from the start
In order to keep your tax bills from your investment property to a minimum it is vital to get the right advice from the start. You need to plan early to guard against any nasty surprises. At RNS we deal with clients who have rental income and property investments on a daily basis.
There is no “one size fits all” answer for tax on properties but at RNS we often get asked the following:
What expenses can I offset against my rental income?
Should my property(s) be held in a Limited Company?
What about my mortgage?
How much tax will I pay if I sell my property?
When / how do I pay my tax bill?
I have got losses on my rental income, what should I do?
How will HMRC know I’ve got a rental property?
RNS are your local accountants and specialists in property tax. With offices in Brigg, Barton and Scunthorpe, and having been established since 1933 we can give the best advice to suit your needs and ensure all the HMRC requirements are dealt with.
To find out more about RNS and how we can help you please contact us for a free no obligation meeting or chat:
Require more information?
If you would like more information or would like to speak to us direct then call us on 01724 842713. Or if you would prefer, ask us a question online.