Working with landlords is just one of the many services a Glasgow accountant offers, here at The Kelvin Partnership. There is a great responsibility landlord accountants have when it comes to tax. We can keep you informed about changes you will need to know, advise on finding the right investments and keep all relevant information safe.
Considering buying a property to rent out?
More and more people are choosing to invest their money in property. If you are considering making this move, there are many things that are important for you consider. For example; remember to do your research and become informed about the area you are looking in. Also, remember that your investment will be long term, so choosing a property you are sure about is vital. Financially it would be beneficial to purchase somewhere which doesn’t need additional work! If you are struggling to decide or simply just need some outside financial advice, then our landlord accountants here at The Kelvin Partnership, with years of experience are more than happy to help!
What property is right for you?
At this stage you should make sure you are not buying a property based on your own needs, but think practically! What decision is financially both beneficial and interesting? There are many different options out there when it comes to buying to let. Focus on what the market wants more than what suits your tastes. This will all prove beneficial when it comes to putting the property up for rent.
Understanding Landlords Tax
Reaching the stage of the renting process, you have a responsibility as a landlord to understand the tax process. Before renting the property out, you must inform HMRC and register with the local council. Make sure you know the legal requirements of being a landlord! Here at The Kelvin Partnership, a landlord accountants will be able to inform you of all you will need to know! To learn more about tax changes that effect you check out our last posts.
What are allowable expenses?
Unsure of what is tax deductible and what is not? Our landlord accountants can help! As a landlord you are responsible for the revenue and capital expenses of the property. For example, a capital expense would include renovations, something that can contribute to the increase in value of the property. These capital expenses cannot be deducted. However, revenue expenses can! These expenses are pay outs related to maintaining and running of your property. For example, lettings agents’ fees. Get the advice you need! Our landlord accountants will have answers to all of your questions.
Are you selling the property?
If you have sold the property you are renting out, then you will be expected to pay Capital Gains Tax. This is a tax on the profit when you sell something, that has increased in value. It is calculated by taking the original cost of the property, any capital improvements made to the property and legal fees and deducting them from the sale money. If you need further help in getting to grips with CGT, then our landlord accountants can give you all the advice necessary!
If you would like any more information about what property is the best investment or some advice on tax, get in touch.