What deductible expenses can I claim for?
Deductable expenses can help to reduce your liability to the Inland Revenue.
Examples of deductible expenses that could be used to reduce taxable profit derived from the property income include the following:
- Insurance
- Ground rent
- Repairs and maintenance
- Lettings agents fees
- Wear and tear (allowance for unfurnished properties)
- Legal and accountancy charges
- Unused 'personal allowances' (applied by Inland Revenue)
- Load interest (MIRAS was abolished on 6th April 2000)
Are the legislations the same for Non-resident Landlords if I don't live in the UK?
The legislation regulating Non-resident Landlords and their agents differ significantly from Landlords in the UK.
If your property is managed by a letting agent, then there is a statutory obligation to deduct basic rate tax on the net income and make payments to the Inland Revenue quarterly. However, you can apply to the Inland Revenue to "self-assess" your own tax.
Do I still have to pay Income Tax on rental income if I don't live in the UK?
Income tax is payable on rental income irrespective of where you live. Landlords must declare this income on a Self-Assessment Tax Return and if one is not issued automatically he or she has a legal responsibility to notify the Inland Revenue of any liability
The Inland Revenue assesses your income individually and properties that are jointly owned require returns to be completed by each legal owner. There is a requirement under Self-Assessment to keep adequate records to ensure that then calculations included in the return are accurate.
Should I have an inventory written for each tenancy?
It is a good idea to have an inventory written for each tenancy.
The purpose of the inventory is to document the landlords possessions including the fabric of the house and their condition. This document should be created at the beginning of each tenancy and again at the end of the tenancy, an inventory provides protection for both the landlord and the tenant.
Kings Lettings Ltd can provide an inventory on the following services, Full Management, Letting & Rent Collection and also Introduction only service where a chargeable fee is tobe made for us to provide you with one.