Buy to let accountant

A brief summary of the relevant buy to let taxes:

•  If you have bought the property in your name, you must submit an annual self assessment tax return and pay any tax due on your rental income. Your taxable rental income would be calculated after deductions of allowable buy to let property expenses from your gross rental income.
• If you own the property jointly (e.g. with your spouse), you need to consider how the income would be split for tax purposes.
• You may have to pay stamp duty land tax (SDLT) when you purchase the property, depending on the purchase price of the property.
• Council tax: Buy-to-let landlords are not generally liable for council tax. The tenants are responsible for paying council tax. However, if the property is a house in multiple occupations (HMO), the buy-to-let landlord is responsible for paying council tax.
• If the buy to let property is being let a furnished holiday let, the furnished holiday let rules will apply. There are certain tax advantages of letting a buy to let property as furnished holiday let. Please get in touch if you plan to let the property be a furnished holiday so that we expert property tax advisors can help you in more detail on the tax implications.
• When you sell a buy to let property, there are capital gains tax implications. The current capital gains taxes are 18% for a basic rate taxpayer and 28% for a higher rate taxpayer. A capital gains tax return is required to be submitted within 60 days of the completion date, and any capital gains tax needs to be paid by the same time. If you are planning to sell the property, please get in touch in advance so we can ensure that your capital gains tax is minimised.