Please Note: This Article is 6 years old. This increases the likelihood that some or all of it's content is now outdated.

Question: How long should accounts be kept to satisfy the authorities, things like accounting files, invoices and tax records, as a property landlord?

Answer: You must keep your records for 6 years after the tax year to which they apply, whether or not you complete a tax return.

It’s a good idea, as well as keeping records of your income and expenditure, to also keep a record of all capital items – in effect a balance sheet for your investment property.

This is simply a matter of recording:

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1 – Purchase Price.
2 – Plus Buying Costs.
3 – Plus all capital expenditure made whilst you own the property – keep all invoices.

It is very important that you keep these records for legal purposes, in case the tax authorities ask to see them. But also, for when you sell a property, so that you can offset your capital expenses against any future capital gains tax (CGT)

You will need this information when the property is sold to enable you to accurately calculate any capital gains made.

4 – Sale Price
5 – less Selling Costs

A Capital gain will be on any money left over from:

(4 minus 5) minus (1+2+3) = your capital gain, less your Personal Allowances = taxable gain.

Your taxable gain made on the sale of a property will then be taxed at the prevailing capital gains tax rate.

Useful Links:

Record Keeping for Landlords

Capital Gains Tax on Property

Note: never rely totally on these standard answers. Before taking action or not, always seek professional advice with the full facts of the case and all documents to hand. LandlordZONE.co.uk

Please Note: This Article is 6 years old. This increases the likelihood that some or all of it's content is now outdated.

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