Buy to lets
Being a landlord is becoming more common these days as taxpayers see property purchase as an alternative to the more traditional methods of pension provision. Some become landlords accidently and others through the inheritance of property or capital that enables property to be purchased.
Building a property portfolio can be fraught with danger and taking sound advice early on is essential in avoiding any pitfalls.
HMRC are also becoming proactive in identifying landlords who have not declared their rental income. HMRC are using Connect, a software tool that interrogates databases, especially the Land Registry records, to identify such individuals.
Landlords are having to come to terms with –
- The withdrawal of the 10% wear and tear allowance on furnished lettings
- The restriction of interest relief on mortgages
- Higher stamp duty charges on purchases of properties
- Payment of capital gains within 30 days of sale of properties
- ATED – ensuring the annual returns are filed by the 30th April, or as necessary, on your properties that fall within these regulations
What else might they face in the future as successive Governments look to raise the tax take and to influence some control over the property market and in particular prices.
In order to ensure that the relevant claims for expenses are being made against any rental income, discuss your buy-to-let issues with us.