{"id":14935,"date":"2018-04-11T12:15:25","date_gmt":"2018-04-11T11:15:25","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=14935"},"modified":"2018-04-11T12:15:25","modified_gmt":"2018-04-11T11:15:25","slug":"new-guidance-on-tax-for-landlords-has-been-released-by-hmrc","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/new-guidance-on-tax-for-landlords-has-been-released-by-hmrc\/","title":{"rendered":"New guidance on tax for landlords has been released by HMRC"},"content":{"rendered":"

Working out the various tax implications involved in being a buy-to-let landlord or property investor can be a minefield, particularly as regulations continue to change.<\/strong><\/p>\n

The majority of landlords who earn money<\/a> through renting out a property will need to pay income tax on the profits, which involves registering for self-assessment through the government’s website by 5 October following the tax year of your first rental income.<\/p>\n

The amount of tax owed is worked out based on how much profit<\/a> you make, as well as your personal circumstances, and an updated version of this information has just been released on HMRC’s website<\/a> to improve clarity surrounding the hurdles<\/a> faced by landlords and investors.<\/p>\n

Since April 2017, the government has been gradually phasing in new restrictions on how much tax relief<\/a> landlords can claim from their mortgage and loan repayments and overdrafts related to the property – which will reduce from 100% down to 0% by 2021. Alternative finance returns, fees and other incidental costs involved in obtaining financing, and discounts, premiums and disguised interests are also affected by the changes.<\/p>\n

How the tax relief will be phased out<\/h4>\n\n\n\n\n\n\n\n\n
Tax year<\/th>\nPercentage of finance costs
\ndeductible from rental income<\/th>\n		Percentage of basic rate tax reduction<\/th>\n<\/tr>\n<\/thead>\n
2017-2018<\/td>\n75%<\/td>\n25%<\/td>\n<\/tr>\n
2018-2019<\/td>\n50%<\/td>\n50%<\/td>\n<\/tr>\n
2019-2020<\/td>\n25%<\/td>\n75%<\/td>\n<\/tr>\n
2020-2021<\/td>\n0%<\/td>\n100%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The information included on the government’s website also covers how to work out your rental income, what expenses can be claimed and mileage rate deductions.<\/p>\n

A new self-assessment help sheet for the government’s Rent a Room scheme has also been published, detailing how occupiers and tenants can make a tax-free income by providing furnished accommodation in their only or main home.<\/p>\n

To read more about how the changes are expected to affect the buy-to-let market, click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Working out the various tax implications involved in being a buy-to-let landlord or property investor can be a minefield, particularly as regulations continue to change. The majority of landlords who earn money through renting out a property will need to pay income tax on the profits, which involves registering for self-assessment through the government’s website… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":5931,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,26,6],"tags":[15,341,207],"class_list":["post-14935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","category-tax-mortgages-money","category-uk-housing-market","tag-landlords","tag-newsletter","tag-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/14935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=14935"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/14935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/5931"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=14935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=14935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=14935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}