Our Property Tax Service
Only a taxable source of income needs to be reported to the Inland Revenue. So if the income from a property source is not sufficient to give rise to a tax liability, and that depends upon any other sources of income that you may have, such as employment income, then the Revenue need not be notified since no tax is due.
In all other cases the existence of the source must be notified to the Revenue, a Tax Return obtained and completed and the appropriate tax paid.
Most buy-to-let property sales have to be reported to the Revenue whether they give rise to a taxable gain or not.
We can advise you as to whether you have any liability and if necessary attend to any matters arising, preparing any accounts, Tax Returns or other submissions for you.
Let properties may be:-
- Unfurnished lettings;
- Furnished lettings;
- Furnished holiday lettings.
Different property tax rules apply to each - they can be complex and often give rise to uncertainty. If taxpayers are not familiar with the property tax rules they should take advice otherwise there is a real risk of paying either too much tax, or too little. Paying too little could result in penalties being incurred.
The UK Inland Revenue have recently become aware of a substantial loss of tax as a result of undeclared or under-declared property income sources; the latter often resulting from the disallowance of deductions for loans and property improvements and claims for loss relief, and are currently engaged in a nationwide effort to clamp down and reduce the leakage of lost tax.
Given the complexities of the taxation of property income (see our guide to property taxation) it is almost certain that many self-prepared accounts will not withstand scrutiny.
We have long experience in the preparation of property accounts and in maximising the deductions that can be legitimately obtained while minimising the potential for dispute.
If you have a concern, or wish us to deal with these matters for you, then either contact us or complete our property taxation enquiry form.
