Property Tax Advice
Increasing numbers of individuals own second properties (or a number of properties) to rent out, or, indeed, rent out part of their own home. These individuals will be subject to income tax on any rental income and generally capital gains tax on any gain on the disposal of the property.
Important points to be considered include the following:
- Maximising relief for tax allowable expenditure.
- Identifying capital allowance claims.
- Quantifying renewals deductions or wear and tear allowances.
- Identifying capital costs of acquisition, disposal and improvement to minimise any capital gain on disposal.
- Special rules exist for properties which are classified as “furnished holiday lets” (FHL).
- There are separate rules for renting a room in your own house.
- The gains and losses from renting different properties are aggregated for income tax purposes.
- Any losses can be carried forward and set against future rental profits (subject to the different rules for FHL).
- There are different rules for property investment companies and their shareholders – particularly for Real Estate Investment Trusts (REITs).
More Information
For further advice do not hesitate to contact:
Sheena Anderson This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Stuart Petrie This e-mail address is being protected from spambots. You need JavaScript enabled to view it
or call 01224 625111