Landlords can reduce their tax liability by maximising the reliefs and allowances that they are entitled to claim. Unfortunately, they often miss out meaning they pay too much tax.
What should I be considering for my rental property?
When you have a rental property, there are three areas of taxation that you must consider:
- Income tax that you will be due to pay on the rent received after allowable expenses
- Claiming allowable expenses and maximising the tax reliefs available to reduce your tax liability
- Capital gains tax liability that may arise on sale
We specialise in helping landlords with their tax returns.
I have completed my tax return myself, why do I need your help?
The simple answer is that you might not – however, just because you have been submitting your tax return for years doesn’t mean that you have been getting it right.
Landlords can reduce their tax liability by maximising the reliefs and allowances that they are entitled to claim, many don’t which often mean they are paying too much tax.
It is also worth pointing out that in the UK, you are completing a “Self Assessment” Tax Return, this means that you are responsible for ensuring that the form is completed correctly and that you pay the correct tax. If you make a mistake or miss a tax relief, you may end up paying too much tax or if you claim a deduction that you are not entitled to, you could become liable to interest and penalties.
At cleartaxation we provide a service that, at an affordable price, can provide you with peace of mind, plus our fee can be offset to reduce your tax liability – we are specialists in managing landlords tax affairs.
- See our blog on ESPC seminar – property tax experts