Landlords Information
Taxation
Income Tax is payable on all letting income received by a Landlord whether they are residing in the United Kingdom or abroad. The introduction of self assessment under the Finance Act 1995, requires that Landlords must complete a Tax Return form declaring their rental income for the tax period and it is the Landlords responsibility to inform the Inland Revenue accordingly.
The tax due is calculated upon your rental income minus allowable expenses such as:
a) Mortgage Interest
b) Insurance & Ground Rents
c) Legal and Accounting charges
d) Costs of maintenance and repairs but not the cost of improvements
e) Allowance of 10% for wear and tear (where applicable)
f) Agents fees including VAT at the prevailing rate |
 |
|
