Haydar Sehri's blog

Haydar Sehri's blog

ARLA: WHAT ARE THE MAIN TAX CONSIDERATIONS FOR LANDLORDS?

The Government has hit landlords hard over the past 12 months with changes to the tax they pay and can claim back. Here we outline the tax rules which landlords need to consider.

Stamp Duty Land Tax (SDLT)

From 1 April 2016 anyone purchasing an additional residential property (that is not their only or main residence) for £40,000 or more must pay an extra three per cent stamp duty above the current Stamp Duty Land Tax (SDLT) residential rates.

ARLA: THE KEY TO TACKLING HOME IDENTITY FRAUD

Home identity scams are becoming more frequently reported in the mainstream media, with multiple prominent cases recently coming to light.

In a recent high profile property fraud case, Laylah De Cruz and her mother, Dianne Moorcroft, duped property professionals into a fraudulent application for a £1.2 million bridging loan on a vacant home in Kensington.

On 16 January, both were found guilty of conspiracy to commit fraud by Southwark Crown Court and are currently awaiting sentencing.

Rental Outcast for 2017

Rightmove has released its latest analysis of the 2016 rental market and what they expect in 2017 to look like.

 

In 2016, outside of London recorded rental increases of 3% with inner London seeing a 5.2% drop in asking prices and outer London seeing a more modest 2.5% decrease in asking prices. The decrease in London was due to more availability of stock as around 32% more properties came onto the market when landlords rushed to beat the stamp duty hikes that came into force in April.

 

Landlord Tax

“Tax doesn’t have to be taxing” was the strapline for an advertising campaign run by Her Majesty’s Revenues and Customs (HMRC) not so long ago. Unfortunately for many of us around this time of year it is taxing both financially and mentally. With around two weeks left to go until the 31st January deadline to file your tax, it’s important to get it right.

 

Blog By: Neil Spooner, Accountant

Budgets have been very hard on the buy to let landlord as explained in the following article

2015-16 removal of wear and tear allowance

For many years’ landlords who let property which was “fully furnished” have been able to claim an allowance each year equal to 10% of the rental income to reduce their tax liability.

A higher rate tax payer with rental income of £20,000 per year has been able to save £800 per year or 4% of the total rental income because of this.

The End of Buy to Let Tax Relief

George Osborne left several gifts for landlords before vacating the treasury. The first has already come into force which is the increase in stamp duty for the purchase of a buy to let property. The second is a reduction of tax relief that landlords can claim against mortgages.

 

As it currently stands, say you’re rent is £10,000 a year and mortgage is £9,000 a year, you make a £1,000 profit. A basic rate tax payer would pay 20% (£200), higher rate 40% (£400) and top tier 45% (£450) to HMRC.

 

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