Property Tax Services
With changes in pension schemes and the drop in interest in saving accounts people are increasingly buying property as a means of investment – whether it be as a second home or as a Buy to Let.
However there are tax implications for owning a second property and Tax Matters is ideally placed to help guide you through this.
If you sell your second home without notifying HMRC you may end up with an unwanted letter from HMRC asking for Capital Gains Tax in respect of taxable rental income and Capital Gains Tax after the sale of the property. But some reliefs are available and there are big changes underway.
The chancellor made announcements in the Summer 2015 Budget that will effect both wear and tear allowance and mortgage interest relief for higher rate tax payers, if you would like to discuss this please call Jonathan or the team on 01442 828006.
Did you know... that many buy to let properties produce either a nil or low profits? This is because the expenditure can be used against the income such as Mortgage Interest and Professional Fees. Even a nil profit has to be reported and loses can be useful in reducing tax from profits in future years.