Rent-A-Room – Rent-a-Room Relief that lets you receive £7,500 in rent, each year tax-free. It applies if you rent out furnished accommodation in your own home. This includes landlords, bed & breakfasts, and guest houses. The income limit covers everything that you charge your tenants as part of the rental service including cleaning, meals, or laundry.
Landlord’s Expenses – You can deduct a range of costs before declaring your taxable income such as water rates, council tax, and costs of services such as wages of gardeners and cleaners.
Mortgage Tax Relief – You can claim tax relief on the interest on a mortgage you take out to buy a rental property, even if the rental property is abroad. In 2017-18, three quarters of the mortgage relief can be claimed in full.
Investment Property – Any gain made on the sale of a rental property will be subject to Capital Gains Tax. If the gain is less than the annual exemption of £11,300, no tax will be payable on the gain made. If the property is jointly owned by two people, both individuals will be able to use their annual exemption.
New Build VAT Claim – New residential property is zero-rated for VAT and therefore, you can claim back VAT on any materials effectively making the building of any property VAT-free.
Main Residence Relief – If your property is originally purchased by you as your main residence and you decide to sell it within three years of moving out of the property, then no tax will be chargeable on the gain made upon the sale.
Commercial Property – In order to minimise the tax on the sale of a commercial property that was used in your business, you could obtain Entrepreneur’s Relief on any gain made on the sale of the property. Therefore, restricting the tax bill on any gain to 10%.
