Landlords and flat management companies
If you are an individual renting out one or more properties or a flat owners using a flat management company to pay for the upkeep of your property we can help by:
- Offering advice on the best way to set up of your rental business
- Registering you and the rental business with HMRC
- Prepare rental income and expenditure accounts
- Completing your personal tax returns
- Dealing with & calculate the Capital Gains Tax on sale of your rental property
- Preparing accounts and service charge accounts for flat management companies
Please contact us, we’ll almost certainly be able to assist you no matter how simple or complex your requirements are.
Changes in the Summer Budget 2015 that will effect Landlords*
Removal of the Wear & Tear Allowance
From April 2016, the Wear and Tear Allowance will be abolished and in its place landlords will be able to deduct the actual costs they incur on furnishings in the property.
No tax relief will be available on the initial cost of furnishing a property.
The new relief will be available to unfurnished and part-furnished properties, as well as fully-furnished
Restrictions to tax relief on mortgage interest
Tax relief on mortgage interest payments for landlords of residential properties will be restricted to the basic rate of tax
The restriction will be phased in over 4 years, starting from April 2017.
A small number landlords who are currently basic-rate taxpayers could also be hit, because the change could push them into the higher-rate taxbracket.
Furnished holiday lettings are excluded from this reform
The level of Rent-a-Room relief, which applies if a room in an individual’s main home is let out to a lodger, will increase from £4,250 to £7,500 from April 2016.
*The above is based on the proposals put forward by the Chancellor in his Budget speech. the details may change during the passage of the Finance Bill through Parliament.