The team at Harvey, Telford and Bates can advise you on all aspects of rental property income including allowable expenses which can be deducted, ultimately reducing the amount of tax due. Allowable expenses a landlord can claim include:
- water rates, council tax, gas and electricity;
- maintenance and repairs to the property (but this excludes building improvements);
- contents insurance;
- interest on a mortgage to buy the property;
- costs of services, including the wages of gardeners and cleaners;
- letting agents fees;
- legal fees for lets of a year or less, or for renewing a lease of less than 50 years;
- accountant’s fees;
- rents, ground rents and service charges;
- direct costs such as phone calls, stationery and advertising for new tenants.
Harvey, Telford and Bates can guide you through the process of declaring your rental property income making sure you take advantage of the current tax allowances such as the wear and tear.
In addition to declaring property income, our team can help you understand new rules and regulations which also apply to buy-to-let properties.
Following the budget announcement in July 2015, buy-to-let property owners may need to consider their options for the future as current tax relief rules on buy-to-let properties, paid for by loans or mortgages, are changing as of April 2017. Currently the tax relief is allowed on the mortgage or loan interest, in 2017 this will initially be restricted, with the tax relief reducing on an annual basis until 2021 when it is due to be ruled out entirely.
If you would like to know how this may affect you, and what measures you can take to reduce its impact, speak to our team now, who can provide the initial guidance, through to initiating any actions you may wish to take to minimise the impact.