Investing in UK Buy to Let (BTL) property has long been considered an efficient vehicle to minimise taxation. However, HM Revenue and Customs (HMRC) have recently increased scrutiny on BTL investors to ensure that tax bills are not being underpaid.
There are unlikely to be any changes to BTL taxation as a result of this review although it is obviously important that investors ensure that they are enjoying the tax benefits of BTL in legitimate ways. Appointing an accountant is probably the best way to guarantee the accuracy of tax returns and keep investors away from the HMRC’s prying eyes. The other benefit of using an accountant is that their fees are a tax deductible cost and so it makes sense on several levels to leave submission of returns to the professionals.
Excluding the stamp duty that may have been payable on purchase of the property, rental payments attract income tax and any proceeds from the property sale, capital gains tax. That said, there is a lot to be optimistic about for the UK BTL market in 2014. During 2013, house prices continued to rise and the average national rent increased by 4.2% with rents in Scotland, London, the North East and …read more
Source: IPIN Live