Landlords are missing out on huge tax breaks
Published ¤ 15/06/2011 15:52:56
Many private landlords are failing to take advantage of the tax breaks available to them, wasting thousands of pounds.
Most of the costs involved in letting a property can be offset against the rental income for tax purposes. However, research from Paragon has shown that many landlords are not aware or do not take advantage of all the tax breaks available.
Paragon's research showed that 13% of landlords do not claim for mortgage interest, one of the biggest costs invovled in the property letting business.
Paragon Group chief executive, Nigel Terrington, commented "Good tax planning is key.
"How landlords implement, manage and run their tax affairs could have a major impact on landlords' property investments and their overall performance.
"It is vital that landlords take advantage of the allowances open to them to maximise their return on investment.
"I'm sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill."
Paul Skinner, from PKS, an independent mortgage adviser in Odiham, Hampshire, said "I am amazed at how many landlords come to us, and they have not been advised of all the tax breaks available to them. It is time that mortgage brokers and accountants began to take resposibility for educating these poeple.
"A landlord that has a property which is let for £1,000 per month, could be paying tax at 40% - £4,800 per year. By offsetting all the costs involved in running the property, mortgage interest, insurance, agents fees, maintenance etc, this can often be reduced to nothing."
If you want "truly" independent and professional advice regarding your property investments, then call PKS on 0845 226 5009, or click here to email us.
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