Monday, 07 December 2015 13:37

Are you Mad to be a Landlord?

In simple terms, no you are not, as property is simply a great investment especially over the medium to long term (sometimes in the short term if you negotiate a great deal!).Being a landlord is complicated and professional help is a must especially with many recent changes to legislation.

 

Below is a simple guide to five things which are about to change that you must know when being / becoming a Landlord;

1)The Budget, back in July, made a change to offsetting tax as a higher-rate tax payer.This takes effect from April 2017 and it means that you will only be able to offset the basic level of tax at 20% on mortgage interest rather than 45%.

2)If your property is furnished you can now allow for 10% of the rental income as a wear and tear allowance, even if there isn’t any wear and tear!The plan is for this to be restricted to actual expenditure.

3)There is a new EU Directive coming into effect in April 2016.Ultimately this could make it more difficult for first-time landlords and accidental landlords entering this market as income is taken into account when underwriting a BTL mortgage. We can help you with this so have a look at our video on our home page at www.conranfinancial.co.uk. You can even book a free consultation on the site or call us free at 0800 689 3173.

4)When you sell an investment property there is quite often Capital Gains Tax to be paid on any gain after the HMRC CGT allowance (£11k this tax year). This should be divulged on an annual self assessment to HMRC but from 2019 the tax will need to be paid within 30 days of completion.

5)From next April, Stamp duty for Buy-to-Let purposes will increase by 3% on these purchases so if you are looking to enter the market or increase your portfolio then completing before April will save you a few pounds! Interesting to note that if you buy a house boat then there is no increase to Stamp Duty!

 

I hope this is of assistance and this should NOT put you off becoming a Landlord as it is a great investment still.As our sister company, Conran Estates, is an ARLA regulated agent they are in a great position to advise you on all Landlord specifics and welcome any questions. You can email This email address is being protected from spambots. You need JavaScript enabled to view it..They have commissioned many really useful videos on their website which will help you in all matters of property so go onto www.conranestates.co.uk and have a look .

If you are looking for mortgage advise then please either visit our website at www.conranfinancial.co.uk or call us free on 0800 689 3173 or email at This email address is being protected from spambots. You need JavaScript enabled to view it..

I hope to be of service.


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