1000 Mortgages Landlords Information

Landlords Information

Find impartial advice and information for landlords, together with mortgages at 1000mortgages.co.uk - where whole of market mortgage brokers do the
searching for you.

Accounting Mortgage Advice listing page: www.1000mortgages.co.uk/landlords-information.asp
Submitted: Yes
Confirmed: Yes

Property Tax - Advice and Tips

Property tax is an `ad valorem tax` that an owner pays on the value of their property. The taxing authority carries out an assessment of the monetary value of the property and tax is assessed in proportion to that value. The monetary value is a reflection of the market value of the property, or in other words, how much the property would sell for under normal conditions in a contemporary market.

Calculating what tax to pay can be a complex process, however, there are some government sponsored websites that give helpful information and answer the most common questions regarding property tax. They also give advice on tax free property investments.

There are many courses available both online and in various workshops that help understand and manipulate the UK property tax system. It is always worth checking out the credentials of those who lead the courses before signing up, but with a little bit of research it is easy to back up any `facts` they claim.

Some websites can help to assess property profit and capital gains tax by prompting for those details that you may already know such as purchase price, solicitor`s costs, survey costs, capital expenditures and selling costs. By inputting these details the website can calculate an owner`s taxable profit.

Information and tips on how to make more from buy-to-let properties, include details on why it makes more sense to live in the property for two years before letting it out, or let out the property and then live in it before you sell, to avoid capital gains tax and exploit the `Private Residence Relief` rule. Did you know that by renting out the spare room in your house, you can take advantage of the rent-a-room scheme and earn up to £4,250 tax-free a year? Or that simply by moving the greater portion of a property to the ownership of a spouse that pays a lower rate of tax, could reduce any property tax liability?

Despite there being so much help available from professional accountants, many people seem keen on trying to sort through their property tax alone or not at all. Remember that an accountant is usually there to try and help you lower the bill. Paying a fee of £100 for 30 minutes when they might save you as much as £1000 is surely worth it; it`s only too expensive when no tax savings are made. Whilst there is a lot of information available online for people
wishing to go it alone, it is worth considering that there can be no come-backs on any advice given; the responsibility is yours alone. For anyone thinking of taking the risk of not declaring anything to the taxman, think again! HMRC have access to a huge amount of information about property owners and frequently keep their eyes on those landlords not declaring their income; the average prison sentence for tax evasion tends to be around 2 years so think
carefully before making any rash decisions.

It is easy to get overwhelmed with the legal `jargon` surrounding tax, but there is plenty of help available. From anyone just starting out in property investments, to the more experienced developer, by doing a little bit of research, it is easy to make the most of your investment property in the UK.