If your rental income surpasses your total expenses, allowances, and tax reliefs, it’s essential to fulfill your tax obligations by submitting a tax return. On the other hand, if your rental property incurs a loss, you may consider voluntary disclosure. This strategic choice enables you to carry forward the loss for potential use in the future if your property becomes profitable.
Determining Your Primary Residence
If you own and personally use multiple properties in the UK, you have the option to make an election designating which property should be treated as your main residence for tax purposes. We can offer guidance on the implications of making such an election, the necessary qualifying conditions, and help you assess its potential benefits based on your individual circumstances. It’s crucial to note that there are strict time limits for filing this election with HM Revenue & Customs, underscoring the importance of seeking advice promptly.
Selling Property
When you have Capital Gains Tax obligations, such as when selling or gifting a vacation home or second property, it necessitates the completion of a tax return. At Belmont Accounting Services, we specialize in offering guidance on potential tax planning strategies that can help reduce your Capital Gains Tax liability.
Furthermore, our team is equipped to calculate your Capital Gains Tax liability and efficiently handle the completion of your tax return, ensuring a smooth process while ensuring you meet your tax obligations.
Rental Properties
If you have rental properties, you are liable to pay income tax on the net rental income, which is the difference between the rents you’ve received in a tax year and allowable expenses and charges. Our expertise at Belmont Accounting Services can help ensure that you maximize your tax benefits by claiming all the eligible expenses and reliefs you are entitled to.
Determining which maintenance and repair costs can be deducted can be intricate, as various methods are available depending on your unique circumstances. We’ll work closely with you to explore these options and help you make the right choices that optimize your tax position and align with your specific needs.
Moreover, we can assist you in claiming all the finance costs associated with loans or mortgages on your properties. This area can be complex, and taxpayers often overlook valuable tax relief opportunities. Our goal is to ensure you don’t miss out on these potential tax benefits.
Furnished Holiday Lets (FHL)
Recent tax changes have brought significant alterations to the treatment of Furnished Holiday Lets. The qualifying conditions for this treatment have become more stringent, and the associated benefits have been scaled back. However, at Belmont Accounting Services, we can provide you with expert advice on the qualifying conditions and the implications of securing FHL status for your properties.
Letting Rooms in Your Home
If you rent out rooms within your own residence, you may be exempt from paying tax if the total rents collected amount to less than £7,500 per tax year. However, specific conditions must be met to qualify for this exemption, and your local Belmont Accountant is available to discuss these requirements with you.
Our expertise extends to providing guidance on all tax-related aspects of property transactions, including buying, selling, and letting property. While we’ve touched upon a few key areas here, if you’re considering property investments, disposals, or rentals, please don’t hesitate to reach out to us for comprehensive assistance.