Tax

Regretfully tax is a fact of life. All income from property is in effect taxable, but there are many concessions available to landlords that can make the letting of their property particularly attractive. We will be pleased to discuss these with you and explain what items you may legitimately claim against tax, this can include the interest on your mortgage payments and Simply Lets fees!

Overseas Landlords

We have for many years specialised in dealing with overseas landlords, who fall into a different tax category.  An Agent may become legally responsible for paying a landlords tax and may therefore be required to make retentions from the rent to cover this.  Certain tax obligations may however be avoided by completion of IRNRL forms, which we can provide and which allow the issue of exemption certificates. Our experienced accounts team will be able to assist you in all such matters and direct you toward the most efficient manner of rent being paid to you.

Stamp Duty

In his Budget Statement on 9^th April 2003, the Chancellor of the Exchequer announced that a modernised system of stamp duty, to be renamed Stamp Duty Land Tax (SDLT), would apply to most land transactions on or after 1^st December 2003.  This change has had important repercussions for both private landlords and letting agents, all of whom were previously required to have tenancy agreements stamped where the considered rental value exceeded £5,000.  This is a complicated piece of legislation, but in summary, the new system of SDLT will only need to be paid where the considered lease value now exceeds £60,000.

This will in effect take most residential landlords out of the requirement to pay this tax. If a contract is created which should qualify, Simply Lets will discuss personally the costs and methods of satisfying the tax with the individual landlord client concerned.

Capital Gains Tax

Many clients ask us about CGT. Regretfully this is a very complicated matter which varies from individual to individual and should always be taken into consideration when considering a property as an investment. We are not able to provide advice in this matter, but will be pleased to recommend independent tax experts if required.