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Landlords

Property investment has become ever more attractive as an alternative to saving in an age of historically low interest rates.

Whether you’re letting a single property or managing a portfolio of many, we can help you manage the implications for rental property tax and ensure you claim all the landlord tax relief to which you are entitled.

Your properties might be here in Dorset, elsewhere in the UK or even overseas. You might be an accidental landlord or need help accounting for property development projects. Whatever your situation, our expert tax advisers will take the flats or houses you own into account as part of your overall financial situation.

Landlord tax return

A well-managed property tax return will not only reduce your liability but also bring you peace of mind, knowing that it’s been filed on time and in good order.

For many people acquiring a flat or home, perhaps on moving in with a partner or through inheritance, will be the first time they’ve had to consider tax beyond the scope of PAYE.

In other cases, it’s a matter of ensuring rental income is properly reflected as part of a more complex self-assessment tax return alongside other streams of income.

Working with the information you provide, or accessed directly through cloud accounting software, we’ll manage your rental property tax return to HMRC from start to finish.

Allowable expenses for landlords

One of the most common types of query landlord accountants have to field is around allowable expenses on rental property.

Some of what you spend on the property you let, or on the business of letting it, won’t incur tax.

A rental property expenses checklist would include:

  •     water rates
  •     council tax
  •     gas and electricity bills
  •     rental property insurance
  •     garden staff
  •     letting agent or legal fees
  •     costs associated with advertising for tenants.

At the same time, it’s easy to get confused and over-claim. For example, you cannot claim your interest payments on your mortgage, or the cost of travelling to the property to inspect it.

Our property tax specialist team will work with you to understand exactly how you manage your rental property and to pin down exactly what you as a landlord can claim.

Capital gains tax on property

Understanding capital gains tax for landlords is vital to avoid unexpected tax bills and to make sure that owning and renting property is worthwhile.

Capital gains tax on buy-to-let property kicks in when you sell it or transfer ownership to, for example, your children.

Careful tax planning, taking into account how your rental property ownership interacts with other income, can offset CGT.

We’ll also help mitigate inheritance tax, stamp duty land tax and other potential costs associated with the acquisition and disposal of buy-to-let properties.

Holiday property tax

As part of our leisure, hotel and tourism accounting service, we specialise in supporting holiday property landlords in Dorset and across the West Country.

We can advise on whether your property qualifies for capital allowances as a furnished holiday let (FHL). We can also help you work out if FHL or long-term letting would be more beneficial to your income and tax position.

Rental property tax specialists

Get in touch today to talk to one of our property tax advisers and start exploring options for improving your tax situation.

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