In the UK, if you make a profit from rental income that exceeds your available then you are required to report this to HMRC, generally by submitting a tax return. Conversely, if your rental property generates a loss, you may want to voluntarily disclose it as this enables you to register a loss which can offset future profits generated through your property income.


Deciding on your main residence

If you do own and personally use more than one property in the UK, it is possible to make an election to nominate which property should be treated as your main residence for tax purposes. We can advise on the implications of making such an election, the qualifying conditions that must be met and help to decide if it would be beneficial given your personal circumstances. There are strict time limits for making this election, which has to be filed with HM Revenue & Customs, so it is important that advice is sought promptly.


Selling property

If you have sold or given away a second property, you will need to prepare a capital gains tax computation and complete a tax return. We can advise you on available tax planning opportunities to minimise your Capital Gains Tax liability. We can also calculate your Capital Gains Tax liability and complete your tax return for you.



If you rent out property you pay income tax on the difference between the rents and any allowable expenses and charges. This is a surprisingly tricky area of tax with many pitfalls for the unwary, but we can help you to make sure that you are compliant with the legislation, whilst maximising all the available deductions and reliefs you are entitled to.

Compliance can be difficult in this area and knowing what maintenance and repairs charges, legal and finance costs etc can be claimed requires intimate knowledge of the tax legislation. Keeping up with the rules can be a challenge as the rules are often counter intuitive and change on a regular basis.


Furnished holiday Lets

There are particular rules related to furnished holiday lets which are stringent and need to be reviewed annually to ensure compliance. We can advise you on the qualifying conditions and the implications that such status entails for your properties.


Letting rooms in your home

If you let rooms in your own house, you may not need to pay tax if the total rents charged are under £7,500 per tax year. But there are conditions in order to apply this exemption, which we can discuss with you.

We can provide you with advice regarding all tax aspects of buying, selling and letting property. We have only included a few areas for you to consider. If you are thinking about investing, renting or disposing of property give us a call.

Get in Touch

TaxSmart Accounting are an independent and forward thinking accountant with the flexibility to meet the client’s needs in a professional and personal manner.  Outsource as much or as little of your bookkeeping and payroll needs as required with our fully personalised service.  Contact us today for further information or a free consultation on how we can help your business.

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