This is a great question and it comes up a lot! Strictly any costs have to be able to meet the “wholly and exclusively” test just like any other deduction. So, again strictly, this would mean the costs associated with preparing financial accounts for a business would be allowable BUT preparation of your personal […]
Category Archives: Property
A lot of lenders offer cashbacks on mortgage deals. Are these taxable? The answer is simply that you think and makes complete sense. The business income manuals (part of HMRC internal guidance – publicly available however) states at BIM100210 that: “A cash-back received in the course of trading is a receipt of the […]
The incorporation of properties seem to follow two basic steps at the moment. For capital gains tax the question about whether you can defer your capital gains tax is about how busy you are. If you have a larger oircfolio and self manage every aspect then there is a chance you will be. The next […]
The tax treatment of Furnished Holiday lets (or SAs as you might know them) is changing and from 6th April 2025 they are going to be treated much like any other residential letting. So you will lose so nice tax advantages. You get to keep the VAT charges on the rents however. The ending of […]
Once your portfolio grows a little you will at some point make a decision to seek out help. Many start with a managing agent, some will get a regular gardener or cleaner and others will take on help with their bookkeeping or other works. It won’t surprise you that tax law has over the years […]
For a long time now the profits and losses of rental have been calculated in the same was as those from a business or trade. In fact renting of property is classed as a rental business. Not to be confused in any way with a trade (sparky, hairdresser, solicitors etc are a trade). HMRC legislation […]
I was speaking at an event last night and updated the audience with my thoughts on the recent budget and some general updates that landlords need to know about. At the end of the talk I was approached by a lady who said she was still confused and asked me directly if she should buy […]
Splitting large bedrooms in two, or carving out an en-suite in the corner of a large bathroom, is a great way to add rental value to a property. In fact many landlords specifically buy properties where this is an option and in with their initial works a good proportion of their spend is for this. […]
One of the great things about property is that over time the value goes up. When it does you get to remortgage. This is great! Raising capital against an existing BTL creates a cash pile to use elsewhere. One of the terrible things about property is that over time the value goes down. Sometimes. […]
First off all landlords can still claim tax relief on mortgage interest. Higher rate landlords can’t claim quite as much relief as they used to be able to but the first point to note is that interest should still be put on your tax returns! The next point though is about how much of […]