Landlords told not to miss out on tax breaks - Mortgages - News - Moneyfacts

News

Landlords told not to miss out on tax breaks

Landlords told not to miss out on tax breaks

Category: Mortgages

Updated: 15/06/2011
First Published: 15/06/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Landlords are throwing away thousands of pounds every year because they are failing to take full advantage of the tax breaks on offer to them.

Although landlords can offset many of the costs incurred through letting property against their income, new research suggests many are unaware of the full range of costs they can claim.

According to Paragon, around one in 10 landlords (13%) are not claiming for mortgage interest, while a similar number (8%) do not claim for insurance.

A third (33%) of landlords do not claim management or letting agent fees, while slightly more (37%) are missing out on deductions relating to legal and accountancy fees.

Over half (55%) do not claim for advertising costs incurred in letting their property.

Nigel Terrington, Paragon Group chief executive, said good tax planning is key.

"How landlords implement, manage and run their tax affairs could have a major impact on landlords' property investments and their overall performance," he added.

"It's vital that landlords take advantage of the allowances open to them to maximise their return on investment.

"I'm sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close