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- Taxation of Property Income - I have recently puchased a second home and have let it to tenants; do I need to declare my rental income and what might I have to pay?
- Tax Deductions - What deductions and expenses can I claim against my rental income?
- Rent a Room Scheme - I intend to let a room in my home to a lodger. Do I have to declare the income I receive to HMRC and if so how will this be taxed?
- How long do I need to keep my accounts, invoices and tax records as a property landlord?
- I understand that Capital Gains Tax (CGT) on property sales has undergone some changes since April 6, 2008. How do I calculate my CGT liability after this date?
- Should I buy residential buy-to-lets in my own name or form a company?
- Council Tax - I have let my property for less than 6 months and now the council are telling me that I, as landlord, am liable for the Council Tax, not the tenant. Can this be right? I would not have let for less than 6 months if I had known this.
- Non-Resident Tenant - I let my property for 6 months on an AST but my tenant has not entered the property. The tenant is paying rent but how do I stand with my tenant, Council Tax, utilities bills and the Tenancy Deposit Scheme?
- I want to gift my property to my children but I need to keep living in my home. I would also consider gifting some investment property, but would still need to receive the rental income. Is it possible to do this without a massive tax bill? Would I need to set up a trust?
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Taxation
Council Tax - I have let my property for less than 6 months and now the council are telling me that I, as landlord, am liable for the Council Tax, not the tenant. Can this be right? I would not have let for less than 6 months if I had known this.
You can let for less than 6 months with an AST, though you cannot then use the S.21 procedure until 6 months is up.
As an alternative, a short-term letting can be achieved if it is the landlord's main residence, when going abroad for example, if an Assured Tenancy (AT) is created with a ground 1 notice being served.
In these circumstance you should seek legal advice because if you create a full AT you could have trouble re-gaining possession.
The Local Government Finance Act 1992 - Ch1 P6 - applies to Council Tax liabilities:
There are some circumstances where the landlord may be liable for Council tax in the first instance - non resident tenant or less than 6 months letting.
However, this does not mean that the landlord cannot re-claim Council Tax he paid from the tenant:
1 by building a CT element into the rent
2 by a straightforward demand for payment where the agreement states that the Council Tax is payable by the tenant.
So the key point is having this clearly set-out as a clasue in your agreement - the tenant is responsible for Council Tax.
©LandlordZONE All Rights Reserved - never rely totally on these standard answers which apply primarily to England & Wales. Before taking action or not, always do your own research and/or seek professional advice with the full facts of the case and all documents to hand.
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- Leaving Early - I signed a new tenancy agreement last month and now I find I need to leave. My landlord says I owe him all of the rent - is he correct? I intend to drop the keys through the letter box and walk away.
- Foreiting of Lease by peacable re-entry. My commercial tenant lives above the shop and has not paid his rent. Can I forfeit the lease?
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Last update: 2009-08-13 08:14
Author: LandlordZONE
Revision: 1.2
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