Use buy-to-let tax breaks

Nia Williams

May 4, 2010

Landlords can offset a wide array of costs incurred through letting property against their income, but many are unaware of the full range of costs they can claim. To help raise awareness of landlords’ tax rights and responsibilities, Paragon Mortgages has teamed up with accountancy firm Perrys to produce the ‘Buy-to-let Tax Guide’ for the 2010/11 tax year.

The Guide can be downloaded at or by visiting the Literature Library at the website.

Amongst the costs landlords can deduct from income are:

• Mortgage interest

• Water rates

• Insurance

• Service charge/ground rent

• Council Tax

• Legal fees

• Accountancy fees

• Repairs and maintenance

• Management or letting agent fees

• Transport costs for visiting the property

• Advertising

• The Landlord Energy Saving Allowance

The Guide helps landlords from purchase through to sale and provides valuable information on Income Tax, Annual Income Tax Returns, Limited Companies and Capital Gains Tax, in addition to top tax tips and frequently asked questions.

Paragon Mortgages’ managing director John Heron said: “Good tax planning is key, particularly as buy-to-let landlords are on the tax man’s radar. How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability.

“It’s an extremely complex area and we are sure that our buy-to-let tax guide will help landlords manage their tax matters. It’s vital that landlords take advantage of the allowances open to them to maximise their return on investment.”

Heron added: “I’m sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill. Landlords shouldn’t be ignorant to savings in the current market.”

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