Lettings & Property Management
A Question of Tax
Unfortunately landlords are required to pay income tax on their net income generated from the property. This is the gross income minus basic expenditure incurred during the letting process.
The subject of tax can be difficult to grasp which is why BP Connections utilises local accountancy firms to brief our landlord clients of their tax position. There is no initial fee but further appointments may be chargeable.
Please note: Handy fact sheets on the tax position are available to all landlord clients.
Landlords Based Abroad
Income tax on the net income from property letting is still an obligatory payment even if you are not residing within the United Kingdom.
Inland Revenue Obligations
The Inland Revenue requires the property agent (BP Connections) to pay them a percentage of the rental income as a form tax (equal to the basic rate). If you think you are exempt from such a tax we can supply you with the relevant forms etc. We will continue to pay the required tax unless we receive written confirmation from the Inland Revenue stating differently. The Inland Revenue have the right to grant or refuse exemption and can easily withdraw any such status on the basis of insufficient tax returns.
Expert Guidance
In the interest of our clients we have established excellent relations with locally based accountancy firms (specialising in personal taxation). If you feel you can benefit from professional expertise we will be delighted to refer you. If you wish to utilise your own accountant we will be happy to provide all returns and necessary document.