Landlords are missing out on legitimate claims against tax

Landlords with a pcapital allowances tax reliefortfolio of buy-to-let properties could be missing out on claiming thousands of pounds of cash back from the taxman.

Legislation dating back more than 100 years allows property owners to claim back capital allowances worth tens of thousands of pounds against various fixtures and fittings in commercial properties – and some instances, BTL rental properties are included.

UK landlords can claim capital allowances, including those with student lets, professional shares, and more traditional HMO lets.

The allowance is a form of relief available against any capital expenditure made buying, renovating or making adjustments to a commercial property. This is not a loop-hole or tax avoidance scheme. It is a provision made by HMRC, but so few eligible business people and landlords actually claim.

For BTL/rental properties to qualify, those that are residential should be shared flats or houses with two or more bedrooms, worth £100,000 or more and owned by UK taxpayers (individuals, UK trusts and UK companies) paying income tax at a rate of 40%.

In some circumstances that can mean there are tens of thousands of pounds worth of rebates available to the property owner, because this tax relief can be backdated to the year the property was purchased.commercial mortgage office buildings broker cardiff

It is quite alarming to consider that many accountancy practices are simply not aware of the potential of these valid claims and as such do not advise their Property Investor clients accordingly. If you find yourself eligible for such a scheme, but your accountant has not suggested it to you, then you should ask yourself what other aspects of accountancy and taxation are you missing out? And does your accountant have a lack of basic expertise or simply not care about you as a client?

When it comes to this aspect of capital allowances, accountants who offer the correct advice on the matter often call in specialist surveyors to report on the areas of potential relief. If you have not looked into the potential of saving via capital allowances previously, please contact Howard Bowes on 029 2115 6918 today and we can make arrangements for an initial review at no cost.

House sales – increased activity reported

mortgage broker cardiff harvey bowesThe National Association of Estate Agents (NAEA) have reported an increase in sales activity again for the month of February 2013. This increase means that sales are now at a 3-month high. Given that December is traditionally a quiet month for activity, this is a very positive sign in the market place.

February also saw an increase in the supply of houses with the average number of properties per NAEA branch increasing from 56 in January to 58 in February.

These small steps are a positive sign for the market. Particularly the increase of housing stock available for sale, giving more choice to house-hunters which in turn may continue to drive some growth.

For those who are able, this is a good time to buy. The deal rates offered by lenders remain highly competitive, even 90% Loan to Value mortgages have become easier to access and lower in cost than they have in the last few years. There are also schemes such as the NewBuy scheme, Funding for Lending and now since the last budget the announcement of the ‘Help to Buy’ scheme.

The Chancellor’s unveiling of the ‘Help to Buy’ scheme in last week’s Budget, which included a package of measures to support those struggling to get onto the property ladder, is a positive development and another scheme designed as a catalyst to increased market activity.

While there are continued concerns, particularly in the Eurozone and other parts of the UK and World economy, if mortgage lenders and the Government continue to make small advancements and develop new strategies, the market is likely to continue to grow little by little.

To find out more about the mortgage deals available or schemes to help buy a home, contact one of the team at Harvey Bowes today on 029 2115 6918

Your home may be repossessed if you do not keep up repayments on your mortgage

Note: Homeowners buying a property with a relatively small deposit, such as 10-15% are at higher risk of negative equity should property prices fall.