10 Top Tips for Landlords

DISCOUNT: landlord Tax Tips For Landlords Stamp Duty What is Stamp Duty? When you purchase a property, you must pay 'Stamp Duty'. The amount of tax you pay is calculated as a percentage of the value of the property. It is vital you include the cost of stamp duty in your budget when looking to purchase a property, the sum can total thousands - so avoid any nasty surprises further down the line. Tax 15% Tax 7% Tax 5% Tax 4% Tax 3% Tax 1% Properties more than Properties more than Properties between more than Properties between Properties between Properties between Properties less than £500,001 and £1m £250,001 and £2m £125,001 and £250,000 £2m £125,000 bought by corporate bodies £1m and £2m £500,000 How Much Tax Will I Pay? The yields you gain from renting out your property make up part of your annual income, so are consequently subject to income tax, In the current 2013/14 tax year, you pay the higher rate of tax on any earnings above £41,450. HIGHER RATE BASIC TAX PAYER TAX PAYER 20% 40% NOTE: It is a good idea to set up a separate account for your rental income. If you do this, your assets as a landlord won't be mistaken for any other What are my allowable expenses? (Allowable expenses include) Interest on a mortgage taken out on the property Buildings and contents insurance Professional/legal fees Council tax ADV HERE Travel costs to collect rent Advertising the property for rent Maintenance "Capital expenses“ are not tax deductible! These are expenses which boost the worth of a property, such as refurbishments or building a conservatory to provide more space for tenants. These kinds of costs cannot be deducted from your income tax bill. However, you might be able to offset these against any capital gains tax when you come to selling the property. www.discountlandlord.co.uk TAX-EXEMPT