Landlord Tax Services

I wish there would have been a statute or law to confirm no tax status, but there isn’t.  You cannot get away by not paying tax on rental income, but you can minimise your tax liability. We always take a proactive approach when it comes to property tax. Your circumstances may differ and need to be looked at closely to calculate tax on rental income.

HMRC have sufficient means and tools to check if you receive rental income or not. If you have a second property, it will show up on the Land registry, and that will be starting tip of an inquiry. HMRC may not send you notice within that year, but it is just a matter of time. You can also get into trouble when selling second property as capital gains tax will become due and must be paid in 30 days of sale.

As a landlord, you need to file a self-assessment tax return every year. It is similar to your normal self-assessment but would need to submit Property Tax page SA105. Non-resident landlords or landlords with foreign rental income have separate rules and guidelines. Contact our Landlord Tax Accountant for proactive advice.

You certainly can as income will be divided into two equal shares. But if you want to change the share of the ownership or already have a different percentage, you can inform HMRC by filling form 17. In this case, tax law accepts the beneficial owner.

Nowadays, because of the changing tax guidelines about property tax, most Landlords are trying to transfer their properties to a Limited Company. This can be a correct decision, but only if you have a property business and you own a property portfolio. Suppose you have only one or two properties and do not intend to increase or buy more. In that case, it is not advisable to transfer properties to a Limited Company as the compliance cost will exceed the savings which you expect to make on taxes.

You will come across dozens of tax planning tips, but HMRC has set up underlying rules in Anti Avoidance legislation. There is a clear understanding of beneficiary owner and tax liability. Even your child can be a legal owner, but if you are beneficiary to the rental income, such income must be taxed in the hands of the actual beneficiary. On the contrary, you can setup trust for your children where they can be the beneficiary, but such an arrangement have other technical complications of capital gains tax and inheritance tax.

A landlord tax accountant will help you to identify and claim expenses such as use of home as office, apportionment of expenses, void period expenses etc. Our experience can benefit you and save you a lot of tax on property income. 

Yes, we can; our property tax accountants have helped many property investors. If you would like to discuss your circumstances, you can send us an email or book an appointment online with one of our specialist landlord tax accountants.