As a landlord, you’re expected to pay income tax on any rental income you earn from your properties. While tax is an inevitable part of life, our handy guide will ensure you are aware of your financial responsibilities, whilst advising how to minimise paying tax on rental income by being as efficient as possible.
You may be a professional buy-to-let landlord or an ‘accidental landlord’ if you have inherited a property. With low interest rates predicted to remain low in the coming years, increased rental profits can also mean an increase in rental income tax.
Here at Leon & Company, we are often asked about how to minimise paying tax on rental income.
Whichever category you fall into, you will be liable for both rental Income Tax and Capital Gains Tax (if selling a property), but there are ways you can minimise tax on rental income.