Tax Advice
Income you receive from rental property is subject to tax in the UK if you are a UK resident, but you are entitled to deduct reasonable costs. Smartlandlord Tax Advice gives you access to answers to your specific tax queries from a qualified tax professional.
| Product Name |
Price (excl. tax) |
| Tax Advice Express |
£60.00 |
| Tax Advice Standard |
£40.00 |
Get answers to your property tax questions from highly experienced landlord tax specialists - by email
Smartlandlord.co.uk® Tax Advice for answers to your specific tax queries from £40 + VAT!
- Guaranteed response time
- Answers to your specific property tax queries by email
- Advice from highly experienced UK-based property tax specialists
- Choose from Express (answered within 1 working day) or Standard (5 working days) service
- Full refund if your query cannot be answered for some reason
UK-based landlord tax experts answer your specific property tax queries by email for £40 with Smartlandlord.co.uk® Tax Advice
- All answers will be based on current legislation and will not be updated if legislation or case law changes following the advice.
- Tax Advice Express includes basic calculations if required. All emails are answered within 1 working day.
- Tax Advice Standard will not provide detailed tax calculations. All emails are answered within 5 working days.
Smartlandlord® Tax services also include:
- Tax Helpline - specialist property tax advice for landlords by telephone
- Tax Planning - strategic tax advice to help you cut your property tax liability
- Tax Investigations - former Tax Inspectors negotiate with the authorities on your behalf
- Tax Return Filing - qualified specialist help to check your tax return before it is filed
- Smartlandlord® offers this service through Cobham Murphy.
- Our advisers offer a nationwide, personal service at a competitive price
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Q. Can I offset losses from one property against the rest of my portfolio?
A. Yes, if you let out several properties, you can offset losses from one against profits from another. You pay property tax on any profit as part of your overall income. Letting residential property is treated as a single business, even if you let out more than one property.
Q. What expenses am I allowed to deduct?
A. To work out your net profit from residential lettings, you need to add up the rental income from all your properties and deduct the combined allowable expenses for all your properties, including:
- letting agent's fees
- certain legal fees
- accountant's fees
- buildings and contents insurance
- interest on property loans
- maintenance and repairs (but not improvements)
- utility bills (like gas, water, electricity)
- rent, ground rent, service charges
- Council Tax
- services you pay for, like cleaning or gardening
- other direct costs of letting the property, like phone calls, stationery, advertising
There are different types of allowance you may be able to claim for your capital costs - expenditure you make on assets like furniture and cleaning equipment. If you let furnished properties, you can further deduct either a 'wear and tear' allowance of 10 per cent of the net rent, or a 'renewals' allowance. Please note that this information is not complete. Please speak to a Smartlandlord tax specialist for specific advice.
Q. Do I need to declare rental income separately?
A. If your total income from UK property is £15,000 or more in a tax year you must declare it on the land and property pages of the full Self Assessment tax return. If it is below £15,000 you may be able to complete a shorter four page return. Your taxable profit from property letting is added to your overall income. If this is more than your tax allowances you will pay tax on it at your normal Income Tax rates.
Q. Are there any other taxes of which I need to be aware as a landlord?
A. If you are selling a property that is not your main home, it is likely that you will have to pay Capital Gains Tax (CGT). The first £9,600 of your total taxable gains, however, is tax free (tax year 2008-2009). If you buy a property in the UK over a certain purchase price you have to pay Stamp Duty Land Tax (SDLT) - previously known as Stamp Duty. You do not have to pay any SDLT on residential property costing £175,000 or less. Above this amount you pay between one and four per cent of the purchase price. SDLT Disadvantaged Areas Relief (DAR) is available for purchases of residential property situated in a qualifying area where the transaction is considered £150,000 or less.
Q. Is overseas property treated differently?
A. If you live in the UK, you will have to pay tax on income you get from overseas property lettings whether you bring the money into the UK or not. You can deduct the same expenses and allowances from overseas property letting income as from UK property letting income, including travel costs. UK and overseas letting businesses are taxed separately, however, and losses from one cannot be offset against the profits from the other.
Dos and Don'ts
Do:
- Speak to a tax specialist on any tax query as the answer in many instances depends on your specific situation
- Maintain a record of any professional tax advice you receive
- Keep all your tax related expenses carefully as you may need these while filing in your returns
Don't:
- Make decisions based on other people's judgements
- Postpone queries and leave it to the last minute
- Take actions based on past experience, regulations can change frequently
