Private Landlords - FAQs
Yes, whether it’s through a residential or commercial property, if you receive income from letting a property, by law you must declare it. HMRC is currently increasing its targeted compliance activity across all landlord types and will start to identify and write to landlords who they consider may not have declared all their rental income. The penalties could be up to 100% of the unpaid liabilities, or up to 200% for offshore related income.
There are several allowable expenses that you can claim to reduce your tax bill. You must pay tax on any profit you make from renting out property. Your profit is the amount left once you’ve added together your rental income and taken away the expenses or allowances that you can claim.
Your Sidekick can help you to ensure you are claiming all the expenses that you are entitled to. Get in touch with us today to find out more.
You’ll be required to pay Capital Gains Tax (CGT) on the eventual sale if there is a gain. CGT is calculated by taking the original cost of the property, legal fees and any capital improvements made to the property and deducting them from the money received from the sale.
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