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Martin & Co Camberley Top Landlord Tips!

Martin & Co Camberley Top Landlord Tips!

Giles and the Martin & Co Camberley team know their landlords, and prospective landlords, always have the worry of being taxed incorrectly. So … the team have prepared a few tips to ensure correct landlord taxation.

 

The Importance of Tax Planning

We all automatically do some tax planning in our daily lives, even if it is just remembering to buy our “duty frees” when we get to the airport. However, if you are going to make the best of your property business, then you need to be aware of the tax implications of your business plans, and to any opportunities to reduce the likely tax bill. Your instinct may be enough for your duty free goodies, but for tax on your business, you need a more structured approach.

 

“Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it would otherwise be.” That is what the House of Lords said in 1935, when they found for the Duke of Westminster and against the Inland Revenue. This still holds true today, though there is now a mass of “anti-avoidance” legislation to consider when thinking about tax planning – and before you ask, the Duke’s tax planning idea was stopped by anti-avoidance legislation!

 

Understanding your Tax Liabilities

Over the past few years, property investment has become a very profitable way to make money. Unfortunately there are very few people who consider the tax implications of their investment strategy before they decide to invest. Instead they take a view that they will address the tax issues when they decide to dispose of the property. This can be a very costly mistake as some simple planning can help to avoid large tax bills in the future.

 

The table below gives an indication of the tax that may be due if you follow any of the popular strategies outlined below.

 

Strategy

Income Tax

 Capital Gains Tax

Buy-to-let

Yes

Yes

Develop & Sell

Yes

No

Develop & Rent

Yes

Yes

Buy & Sell

Yes

No

Buy-let-live

Yes

Yes(but is dramatically reduced)

Buy-live-let

Yes

Yes(but is dramatically reduced)

Rent-a- Room

Yes
(if claiming rent-a- room relief and income is greater than £4,250)

No (if tenants live with the family owning the property)

Furnished Holiday Lets

Yes

Yes

 

 

Keep an eye on the Martin & Co Camberley website www.martinco.com/letting-agents/camberley for more news items and information about the property market!

 

For more information on letting your property with Martin & Co Camberley, or to speak to Giles and the team regarding any property matters, contact the office direct on 01276 691 510 or alternatively, email the office on Camberley@martinco.com. To drop into the office, head towards 7 High Street Camberley, Surrey GU15 3QU.