With college and university students
all looking for accommodation in the next few months,
Wolverhampton based accountants and business advisers
ags is warning local property developers to watch out.
As the government alters the buy to
let tax laws and financial regulations, prospective landlords
are being urged to research fully, keep up to date and
informed, about any new developments and changes that
take place.
Steve Aston, partner at ags explains:
“With more and more people buying up property to
rent, the government has been forced to take action. Most
people aren’t aware of the taxes and rules that
apply when buying to let.
“Firstly, property buyers are
charged tax on the rental income they receive from the
property. This tax will be payable on the rent received
after deducting allowable expenses, which includes mortgage
interest, repairs, agents letting fees and furnishings
allowance.
“Properties are also liable for
Capital Gains Tax with the eventual sale. Normal owner
occupied residential properties are exempt from CGT, but
this is a one off exemption granted by the HMRC. The sale
of any investment property is therefore liable.”
With the buy to let market on the increase,
prospective purchasers need to keep up to date and be
aware of changes, consulting their accountants for advice
and support whenever possible.
For more information contact
ags on 01902 717175.
