If you own a property that isn’t your primary residence, the income generated from renting it out is subject to income tax. This tax is charged at your marginal rate, but there’s no need to pay National Insurance contributions on rental income. Allowable Deductions You can reduce your taxable rental income by deducting certain expenses,…Read More
As winter sets in, property owners often face unwelcome surprises like leaks that escalate into major structural concerns. One of the most significant expenses that may arise is a roof replacement. Given the substantial cost involved, it’s essential to ensure this expense is categorized and utilized appropriately. This distinction matters because not all expenditures are…Read More
When tenants leave a rental property, landlords often face questions about covering property expenses and whether tax relief can be claimed on costs incurred during the vacancy period. Understanding the tax implications of such situations is essential for maintaining profitability and compliance. Claiming Tax Relief on Expenses for Vacant Properties If your property is temporarily…Read More
The recent adjustments to Stamp Duty Land Tax (SDLT) announced in the Labour budget on October 30, 2024, have brought significant implications for property investors. If you’re looking to make a residential property purchase, it’s important to consider how these changes may affect your return on investment (ROI). In a previous blog, we outlined the…Read More
The recent budget announcement by the Labour government on October 30, 2024, brought significant changes to Stamp Duty Land Tax (SDLT) thresholds and rates. If you’re in the market for a property, these changes could have a notable financial impact, particularly if you’re an investor or purchasing a second home. For instance, purchasing a property…Read More
Stamp Duty Land Tax (SDLT) is a tax on property or land purchased over a certain price in England and Northen Ireland. Currently the thresholds up to 31st March 2025 are: These thresholds are then taxed at different rates depending on the value of the property/land regardless of the purpose of the purchase. Since the…Read More
The recent Autumn Budget has introduced notable adjustments to Capital Gains Tax (CGT) rates, set to affect taxpayers for the current tax year and beyond. These changes may have significant financial implications, especially for property investors and landlords, as they prepare for their tax liabilities by January 2026. Changes to Capital Gains Tax Rates Before…Read More
Letting agents typically deduct their fees directly from your rental income and deposit the net amount into your bank account. Here’s a quick guide on how to handle these transactions in QuickBooks Online. You will then see the net amount reflected in your bank account, and you’ll need to select the option to Split the…Read More
The recently released Autumn Budget presents the Labour government’s economic outlook and policy plans for the next five years, with significant updates affecting property owners and investors. Here’s what landlords need to know. 1. Increase in the Stamp Duty Land Tax (SDLT) Surcharge One of the major announcements in the budget is the increase in…Read More
In this year’s Spring Budget, the government announced the repeal of the Furnished Holiday Lettings (FHL) regime, which will take effect on April 6th, 2025. While many are aware of the impending change, the full implications on businesses operating under the FHL regime might not be as well understood. This transition will significantly alter how…Read More
If you’re married and thinking of buying a property, there’s an important tax consideration you might not be aware of: for the purposes of Stamp Duty Land Tax (SDLT), you and your spouse are treated as one entity. This means that any property-related tax relief your spouse has taken advantage of could affect you as…Read More
SPVs or Special Purpose Vehicles are companies that are set up for the sole purpose of purchasing, holding or letting out properties and nothing else. So, if you are a landlord who is looking to set up a limited company for tax purposes, it might be a preferable option to setting up a trading company.…Read More
At PJCO Accountants, we understand that our success is directly tied to yours. That’s why we continually develop and train our ACCA-qualified accountants to deliver exceptional business, accounting, and tax services. Here’s how we can enhance your business: 1. Strategic Financial Planning We create detailed financial plans aligned with your business goals, guiding you through…Read More
Capital Gains Tax (CGT) can often be a significant consideration for property owners upon disposal of their assets. However, certain reliefs, such as Principal Private Residence (PPR) relief, can significantly reduce or eliminate the CGT liability, particularly when the property has been used as a primary residence throughout ownership. Principal Private Residence Relief Explained PPR…Read More
As a landlord, managing your finances effectively is crucial to the success and growth of your property investments. One key aspect of this is filing your self-assessment tax returns on time. The official deadline for the year ending 5th April 2024 is the 31st of January 2025. However, there are many compelling reasons to consider…Read More
Never call an accountant a credit to his profession; a good accountant is a debit to his profession.
Charles Lyell
