PROPERTY TAXATION

Owning

Before actually purchasing your ideal property, consider and take advice on how to own it - i.e. in your sole name, in joint names or possibly via a company? Your individual circumstances will usually dictate which method is best from a taxation point of view.

For example a jointly held property owned as 'tenants in common' could allow you to allocate profits to a non-taxpaying spouse or civil partner.

Income from property owned via a company will almost always be taxed at a lower rate than if it was owned in your own name. So why doesn't everyone do it? Well, companies do not receive the annual Capital Gains Tax exemption (which for the present tax year, 2010/11, is £10,100) and are not entitled to many other reliefs available to an individual.

Renting - Expenses

Most importantly, keep a record of all expenses incurred which relate to the costs of purchasing, owning and renting your property. Include costs incurred prior to the commencement of letting and those which include some element of private expenditure.

Rental Accounts

Full disclosure must be made annually to HM Revenue and Customs of your rental income and associated expenses. We can ensure that you claim the full range of expenses to which you are entitled and thus avoid paying more tax than is necessary.

If you have any concerns regarding the above, please Click Here to contact us for more information or for your free initial consultation.