Property Investment and Tax

Buy to let involves investing
in property with the expectation of capital
growth with the rental income from tenants
covering the mortgage costs and any
outgoings. However the gross return from buy
to let properties, the rent less expenses, can
change. Investors also need to take a view on
the likelihood of capital appreciation exceeding
inflation. Investors should take a long-term view
and choose properties with care.
Tip
When choosing between investments always
consider the differing levels of risk and your
requirements for income and capital in both
the short and long term. An investment
strategy based purely on saving tax is not
appropriate.
Which property?
Investing in a buy to let property is not the same
as buying your own home. You may wish to get
an agent to advise you of the local market for
rented property. An agent will also be able to
advise you of the standard of decoration and
furnishings which are expected to get a quick
let.

A correctly drawn up tenancy agreement will
ensure the legal position is clear.
Local property Tax and stamp duty apply
Income tax will be payable on the rents received
after deducting allowable expenses. Allowable
expenses include mortgage interest,
repairs, agent’s letting fees and the cost of
replacing furnishings.

Need further assistance contact Vanessa on 0860791476