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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

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 It is now over 6 months old so the content may be out of date.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."

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