Tax in PropertyNobody wants to pay taxes, especially for property, but you may be surprised with what you actually have got to pay, for instance, the cost of maintaining and marketing rental properties can be deducted from the income the property generates. These expenses can include mortgage interest payments, insurance, utilities, repairs, maintenance, agency costs, advertising costs & management fees, as well as the non-cash cost of depreciation. Depreciation is supposed to reflect the diminishing value of a tangible asset over time. If you buy furniture for a rental house, for example, it's likely to wear out over the course of several years. The value of that furniture is depreciated, written off as a deductible expense on your tax return, over a five-year period. Imagine how many you have after a property has been rented out for a while. So depreciation expenses frequently reflect phantom costs that can be used to shelter otherwise taxable income. Capital Gains Rules. When the chancellor announced the emergency budget, property investors waited to find out exactly how this could effect them and what changes to tax could be made? Although annual exemption for capital gains of no less than £10,100 remained the same, the new CGT rate for higher tax payers increased to 28%! We have accountancy experts to work through this with you, to offer you help to make sure that you are not paying any more tax than you have to and helping you offload your assets at the right time, without worrying about the consequences! We look at every possible way of saving you money, sometimes it can be the difference between profit and loss! We can provide a free property tax planning guide, with free initial telephone access to their tax planning specialist; this is only available to clients of Prospect Investors Club members. This covers tax saving areas such as:
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