Home Landlord tax planning Log in/Register

Landlord tax planning services

Get advice from experienced tax advisors

Expert tax guidance for landlords with investment properties

However large or complex your property portfolio may be, Victorstone can link you with specialist landlord tax advisors who will inform you on the best way to structure and manage your investments for the best possible returns.

Savings can often be made on capital gains, capital allowances and stamp duty land tax. However, your setup can affect what, and how much, you need to pay. It’s the job of our tax consultants to find ways to reduce or mitigate your tax liabilities by planning ahead and offering practical solutions that remain in line with all the latest requirements from HMRC.

When do landlords need to pay tax?

As a landlord, you will typically pay tax:

  • When you buy a property – this is referred to as stamp duty
  • When you let the property (usually on a yearly basis) – this is referred to as income tax
  • When you sell a property – this is referred to as capital gains tax

There are specific criteria and tax thresholds that apply to each stage of this process.

For example, the amount of stamp duty you must pay on your initial purchase will depend on the value of the property, whereabouts the property is located, and if any relief or ‘holiday’ packages are available (as happened in the UK throughout the early stages of the coronavirus pandemic).

The amount of income tax you pay will be determined by your annual income. You will not usually need to pay tax if you make less than £1,000 a year from letting your property. You will also need to pay class 2 National Insurance contributions if you earn more than £6,475 from your property venture.

Capital gains tax is payable on any property that makes a profit. It’s also applicable to inherited properties. There are different capital gains tax thresholds for Buy to Let landlords, trustees of settlements, and higher rate taxpayers, and these are under regular review by the Government. Your landlord tax planning specialist will be able to help you work out exactly how much capital gains you need to set aside from your sale, and ensure you make your payment within 30 days, as per the current regulations.

Additional services for non-resident landlords

If you own a rental property in the UK but you live outside of the UK, you need to comply with the Non-Resident Landlords (NRL) scheme, which sets rules around how you pay tax on your assets and investments. The scheme requires UK letting agents to deduct basic rate tax from any rent they collect on behalf of non-resident landlords.

This tax can be offset against your tax bill at the end of each year. We can help you understand the intricacies of the scheme and set a plan in place to ensure you meet all deadlines and liabilities. This may involve overseeing your Non-Resident Application process with HMRC, providing monthly statements, and handling annual tax returns on your behalf. Our number one aim is to keep time-consuming admin to a minimum and take the hassle out of owning and renting a property from afar.

Contact us today for more information

Whatever your circumstances, and however long you have been letting property for, we are confident we can make your life easier by streamlining your tax affairs and eliminating the confusion from what can be a daunting process. Get in touch with Victorstone to learn more.