Buy to let Accountants
In recent years, it’s not surprising the investors have looked elsewhere with the fluctuating stock market. The buy-to-let has significantly grown in the UK Property market. The investment ensures long-term success, with the right accounting. We can help you get the most out of your property with expert buy to let accountants.
Buy to Let (BTL) involves investing in a property to rent it out. The mortgage regulation is a bit of a minefield compared to regular mortgages. The landlords invest in increasing capital growth with a higher ROI. Hence a strategic deal should be-made
Factors to keep in mind when investing in Buy to Let-
- Convenient Location
- Research local Market
- Consider having your property furnished to attract tenants.
- Purchase property that requires serious maintenance
- Depend on others to look after your properties
- Cut corners with legal documentation.
How to choose the property?
Investing in a BTL is not the same as buying your own home. You should carry out market research to narrow down the choices. Consider the market demand when choosing between two bedrooms flat or a four-room house. Most of all, the location of the property is an essential factor. A convenient spot is more likely to be sold out first. Furthermore, the standards of fitting and furniture should be up-to mark to attract tenants. It seems a little difficult task to look into every detail before the investment. Hence an agent could support you by narrowing options based on your criteria. Agents will also look into the process of legal tenancy documents. Moreover, they will also have the taxation aspect considered.In the UK, legal fees tend to be higher if the property isn’t your primary residence. Also, in case of losing your tenants, you will have to continue to pay your mortgage. Indeed, a scary moment for every buy-to-let landlord!
Another factor to consider is the capital gain tax. Along with paying the mortgage fees, if you do happen to sell for a return, then you will have to pay a percentage of your profit to the government. Although, there are circumstances in which, if you live on the property, you could claim the tax relief.
However, investing in buy-to-let properties is a great way to secure a steady income, though a wrong step can end up engulfing money.
To head-start your processes, we, JK Accountants help you by providing professional accounting advice. Thus, it saves you valuable time as we simplify the complicated procedure. Our strategic financial planning assures a higher RIO for your investment. Furthermore, we also handle complete taxation and provide professional advice for your buy to let properties. Our qualified accountants work together, keeping up-to-date with the current regulations to maximize income from your property.
One-in-eight landlords, get specialist tax advice to help them manage their portfolios.
Our proactive team has the knowledge and expertise to guide you through any situation, gaining a beneficial outcome for the landlord.
JK Accountants tailor services to help you identify opportunities, reduce the tax burden, and offer consultancy.
Capital Gain Tax changes for residential buy to let Landlords
There are three new tax reforms that were announced in the 2018 Budget and which are due to be introduced on 6th April later this year. The changes could have big implications for landlords and the amount of Capital Gains Tax (CGT) payable if they decide to sell a rented property in which they’ve lived at some point during their ownership.
First of all Lettings relief will be limited to properties where the landlord lives with their tenants from 6th April. Landlords are currently entitled to relief of £40,000 on CGT, even if they don’t live at the property.
Secondly, private residence relief is being scaled back which means that landlords who previously lived in their houses before letting them out will see the period they are entitled to CGT relief cut from 18 months to 9 months.
Finally, the CGT incurred following the sale of any residential property will now have to be paid within 30 days of the completion date. At present, owners can wait to tell HMRC in their tax return for that tax year, but after 6th April they will need to complete an online return and pay any capital gains due. Failure to pay within the 30-day deadline could result in HMRC imposing interest and penalties.
What does all this mean to landlords looking to sell a residential property? If they’re considering selling a property after 6th April they may have to pay more CGT.
Our buy-to-let tax accounting services specialise in the following-
- VAT on property purchase
- Stamp Duty Land Tax (SDLT)
- Income Tax on property profit
- VAT on property conversion and refurbishment
- Capital Gain Tax (GCT)
- IHT on buy to let investment
- Up-to-date adjustments according to the law and regulations