You main source of Buy to Let (BTL) income will be rent. It is vitally important that they get a true sense of likely rental levels by speaking to local estate agents and generally researching the local rental market.
Most landlords will also be interested in the potential resale value of their BTL property. So the local market, transport links, schools etc. may also be important considerations.
Rental income and tax
Tax is payable on the profits made from letting a BTL property. It’s normally calculated on the gross annual rental income less any allowable expenses incurred as a result of renting out the property, as well any other allowances that the client is entitled to.
Losses incurred in any year may possibly be carried forward to set against profits made in future years.
You will have to declare this income on your tax return so they should keep a record of rental payments received and any associated expenditure for the rental property. An accountant will be able to ensure that HMRC are properly advised and all allowable expenses and allowances are correctly identified.
These are examples of some expenses that may be deducted. It’s not a comprehensive list and it is offered as a guide only:
The proceeds from the sale of a BTL property are subject to capital gains tax. Calculating this tax liability can be quite complicated and you should take expert advice from a qualified accountant.
For estate agents we act as introducers only.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Property Asset Finance’s role is to provide you with professional mortgage advice. We are dedicated to the Buy to Let and Residential mortgage market – helping you find the best mortgage solution for your needs.
The mortgage market has never been so complicated. Our expert mortgage advisers will guide you on your best options and find you a solution that is specifically right for your needs.
Your property may be repossessed if you do not keep up repayments on your mortgage.
The FCA does not regulate some forms of Buy to Let mortgages.
For Residential and Buy to Let mortgages, our typical advice fee is £395 and we may receive commission from the lender.
We act as introducers for investment products.
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