Do you want to save tax from your rental property? Keep this tax advice for landlords in mind whilst filing your tax return.
Tax Advice For Landlords
- Deposits from your new tenants should be excluded from your property income tax return, so you don’t need to pay tax for them.
- From sole ownership, transfer a property’s ownership to your partner if they are a low-income earner, and you live together as a married couple or civil partner. This will help lower the income tax rate.
- Set aside a quarter of your rental income in a savings account each month, so you’ll have the funds to pay come tax time.
- Reclaim repair costs at every tax year they’re incurred.
- Claim additional tax relief for properties you let as holiday accommodation in any European Economic Area (EEA) country before April 2010, and which you pay UK tax on the profits.
- Get expert advice on VAT matters pertaining to lease or purchase of a commercial property, and any transaction that is unusual. On death, sell a property without a sitting tenant, as this will fetch a higher price.
- Elect a foreign property as your Principle Private Residence (PPR) or Main Residence Release (MRR), so a portion of the gain is safe from UK Capital Gains Tax in the event of a sale.
- Separate rental account from the personal, and pay all the rents into that account. In the event that a tax inspector asks for proof, you won’t have difficulty providing the documents.
- Regularly print bank statements if you only use online banking for record purposes. Bank statements may only be accessible online for a limited period.
If you think you may be owed some tax back. Apply here to get your tax back.