To get help with buy-to-let tax planning and filing, please contact us. 

To get help with buy-to-let tax planning and filing, please contact us. 

Buy To Let Properties 

Buy To Let Properties 

When a property is rented out it is a legal obligation to declare any profits to HMRC. However, it is often the case that a loss will result; in this circumstance, these losses can be used to reduce future profits. 
We complete rental accounts showing a full reconciliation of income and expenditure and complete the property pages on the self-assessment tax return. 

Frequently Asked Questions 

Frequently Asked Questions 

Q: Do I have to declare my profits? 

A: Yes, you have a legal obligation to inform HMRC of all rental profits and maintain accurate records. 

Q: Will I get higher rate tax relief on my mortgage interest? 

A: No, tax relief is capped at 20% (current basic rate). 

Q: Should I declare losses? 

A: Yes, as any losses arising can be carried forward and used to reduce future tax bills. 

Q: Will I have to pay capital gains tax when I sell my property? 

A: This will be dependent on whether or not a capital gain has arisen and whether or not you have recorded and declared all capital expenditure. 

Q: When is capital gains tax payable? 

A: As from 6 April 2020 the tax must be paid within 30 days 

Q: Will I have to pay stamp duty when I purchase a buy-to-let property? 

A: Yes, you will, and from March 2016, a stamp duty land tax surcharge is payable. There is a sliding scale, starting at 3%. 
Purchase price £300,000 
Standard SDLT 5% 
Surcharge 3% 
Total 8% 
Charge £24,000 

Q: What are the current SDLT rate? 

A: Standard Additional excess rate* 
Additional excess rate* 
£0 and up to £125,000 
Over £125,000 and up to £250,000 
Over £250,000 and up to £925,000 
Over £925,000 and up to £1,500,000 
Over £1,500,000 
*NB additional excess rate not applicable to companies 
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