landlord tax
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Regulation & Law
Landlords ‘not ready’ for new HMRC tax filing rules
Property owners earning above £50,000 in rental income will have to send quarterly tax returns to HMRC from April.
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Rental market
Taxing landlords harder will critically damage growth warns NRLA
Ben Beadle at the NRLA says the Government must use this month's Budget to encourage property investment instead of short term tax grabs.
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Rental market
HMRC report reveals shock fall in landlord income
According to HMRC, landlords’ income has dropped by 4% for traditional operators but numbers of those renting via Airbnb has increased.
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Latest property news
HMRC warns property industry over new tax avoidance scheme
Private landlords can end up paying more tax, as well as interest, fines and fees, after adopting a 'hybrid business model', HMRC says.
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Latest property news
23% more landlords move to Ltd company status as tax increases bite
Official data reveals surge in applications by landlords to incorporate their businesses as mortgage interest relief tapers off.
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Latest property news
Nearly half of landlords may drop letting agents
Forty seven percent of the 1.1 million landlords who use letting agents say they would self-manage their properties if their profits begin to fall following the taxation changes due to kick in next year. From April next year tax relief available to landlords is being gradually reduced for higher and additional rate taxpayers and will only be available at the basic rate from 2020. This means for example that a 40% tax payer who currently pays £1,680 tax on a rental income of 15,000 will pay £6,000 in tax in four years’ time. “A significant number of landlords will be hit hard by the tax changes and agents’ fees will be one of the items underneath the magnifying glass if profits begin to decrease,” says Richard Price, Executive Director of the The UK Association of Letting Agents (UKALA), which carried out the research. It asked 900 investors about the tax changes during a survey in September to assess the impact the extra tax burden might have on letting agents’ businesses. The findings were highly variable depending on where the landlords were operating. For example, 56% of Scottish agents canvassed said they would ditch their agent if profits were squeezed, while…
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Latest property news
Cherie Blair says: axe the tenant tax!
Landlords fight back over The Tenant Tax: Cherie Blair QC is to represent the organisation called, ‘Axe the Tenant Tax’ at a permission hearing for judicial review of section 24 of the Finance Act 2015 on Thursday 6th October 2016 at the Administrative Court, Royal Courts of Justice, WC2A 2LL The organisation says that changes proposed in Section 24 of the Finance (No.2) Act 2015 will stop buy-to-let finance costs (largely mortgage interest) being a claimable business expense. This means, they say, that most landlords with mortgages will now have to pay tax – The Tenant Tax –on their turnover rather than their profit and no other business in the UK is treated in the same manner. Many landlords will have to pay extra tax of 20 per cent or more of their mortgage interest payments. The tax they pay might be greater than their real profit, leaving them with a rental loss and a cash shortfall. This tax will only affect individuals who own rental properties in their own names, like the millions of smaller landlords in the UK. Companies owning buy-to-let property and wealthy cash investors are excluded from the tax. Co-claimants Steve Bolton, Founder of Platinum Property Partners, and…
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Features
The great landlord tax clampdown
HMRC is targeting landlords with its latest campaign, reports Andy Matthews, partner at the national law firm, Gateley.
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