Property Income

Property Income

Property Income is defined in the income tax legislation as, income from rent or other receipts less expenses, from properties and estates and/or any interest or rights in or over land in the United Kingdom or abroad.

Normally income from property is not trading income even if a person works full-time running the rental business. For this reason property income cannot be offset against other trade losses.

What are the issues?

Landlords who pay tax at the higher rate of 40% face important changes to the way mortgage interest is treated for tax purposes. HM Revenue and Customs’ newest rules have had an impact on the amount of tax buy-to-let landlords and investors have to pay. For this reason investment decisions must be carefully considered. Incorporation is an option and many landlord have decided to use limited companies when purchasing buy-to-let properties.

We can assist by applying the best method to minimise your tax liabilities.

Contact us to discuss the advantages and disadvantages of running a property business !

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