Buildings and Contents Insurance
It is the responsibility of the landlord to insure the building and contents in respect of their property. Tenants are responsible for insuring their own possessions. Existing standard buildings and contents insurance in respect of your property may not provide relevant cover, or may place certain restrictions on cover when a property is rented. Failing to inform your insurer that the property is being let may invalidate same and any subsequent claim you may require to make.
Mortgages on Rented Property
If the property you intend to let has a mortgage, you must inform your lender. Some lenders have restrictions on who you can let to.
Tax on Rented Property
The UK tax system is complicated with new laws and regulations being introduced all the time. This is one area where you are strongly advised to seek specialist advice. There are various taxes, which you may be liable for a result of your activities as a landlord:
- Stamp Duty Land Tax on the initial purchase
- Income tax on rental profits
- VAT on expenditure incurred on maintenance of the property
- Capital Gains Tax when the property is sold
- Inheritance Tax when the owner dies
- Non-Resident Landlords (NRL)
Non-Resident Landlords (NRL)
If you live abroad and let property in the United Kingdom, you will have to pay tax on your rental income. To receive the income without the deduction of tax, you will have to apply to HMRC to receive the income without the deduction of tax.
Our registration approval number: 904/NA055133
Further information can be obtained from the HMRC website www.gov.uk