Understanding Private Residence Relief and Letting Relief
In general, there is no Capital Gains Tax (CGT) due on the disposal of a property which has been used as the owner’s main residence throught the period of ownership. This relief from CGT is commonly known as 'private residence relief'. However, where all or part of the home has been rented out the entitlement to relief may be affected. Homeowners that let all or part of their house may not benefit from the full private residence relief, but may benefit from letting relief.
Buy to let mortgages
The gradual restriction of tax relief for buy-to-let mortgage interest has received much publicity since the process commenced 5 April 2017. From that date, tax relief is converted from a straight forward deduction against business profits into a basic rate tax deduction.
Buy to let mortgages
The gradual restriction of tax relief for buy-to-let mortgage interest has received much publicity since the process commenced 5 April 2017. From that date, tax relief is converted from a straight forward deduction against business profits into a basic rate tax deduction.
Common misconceptions abut tax and letting property
HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:
Common misconceptions abut tax and letting property
HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:
Chancellor declares ban on ‘extortionate’ letting fees
The autumn statement addressed the current economic forecasts and projections, provided by the Office for Budget Responsibility (OBR).
Chancellor declares ban on ‘extortionate’ letting fees
The autumn statement addressed the current economic forecasts and projections, provided by the Office for Budget Responsibility (OBR).