Rental profits is calculated on an accrual basis. The accrual basis involves taking rents receivable rather than rent received and allowable expenses payable rather than expenses paid. The taxable property income profit will therefore be: Rent Receivables X Less: Expenses payable (X) Property income profit/(Loss) X/(X) Rental property is chargeable to tax at 20%/40% and
Income Tax Archives - Page 2 of 2 - Martax Accountants
July 13, 2017
July 13, 2017
Residential Property letting – Restriction of Finance cost relief for individual landlord – Changes from 6 April 2017
At current, all landlords of residential property in or outside the UK, are permitted to claim relief for finance costs (e.g. mortgage interest) on their let property, giving tax relief at 40% and 45% for landlord. Individual that receive rental income on residential property and incur finance cost (such as mortgage interest) will not be