Rental Property and Tax

At Mansell & Co we have many years of experience assisting numerous clients in the Bishop’s Stortford area with the taxation of their property. Some have deliberately set out to build-up a portfolio of residential and/or commercial property but many others have simply held onto a flat or house that they used to live in, for example after moving in with a new partner or taking a job in another area.
Whatever the situation, we can guide you through the requirements of HM Revenue and Customs, including:
• Registering to declare on a Self-Assessment Tax Return that you have started to receive rental income.
• Advising you on the types of expenses and allowances that can be claimed against the rent.
• Explaining how to deal with losses in years when rental expenses exceed income and the types of tax reliefs available.
• Calculating the tax due on rental profits and how your other income affects the rate of tax payable.
• The options relating to VAT on commercial properties.
• Assisting you with the completion of your annual Self-Assessment Tax Return.
• Calculating Capital Gains Tax that may be payable when the property is sold, if it has increased in value since it was purchased.
• The special rules that can often save Capital Gains Tax on sale. These include relief if the property was your main residence at any point or if it is a commercial property that you run your own business from.
Even if your rental property is not making a profit it is still a requirement that you register for Self Assessment and declare the income to HM Revenue & Customs. Failure to register can result in severe penalties, even if no tax is payable. We are a friendly local firm and our fees are probably cheaper than you might expect! We can assist annually with tax returns or help you on a one-off or ad hoc basis as required.
Please do not hesitate to contact us if you would like to discuss how we can assist you in meeting your obligations in this area. We offer a free, no obligation initial meeting or will be happy to discuss how we can help either by telephone or email.

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