Paying income tax to HMRC on uk property portfolio

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Paying income tax to HMRC on uk property portfolio

Post by shepburn » Sun, 03 May 2009 5:07 am


Being a bit lazy here as I've ordered a few books on this so am sure the answers out there somewhere, but can anyone tell me the income tax position on income derived from UK rental properties?

I'm planning to emigrate at some point in the future but it is likely that the majority of my income will be derived from the rental income of a small uk property portfolio.

Has anyone been through this themselves? Would I simply be better liquidating my assets into cash and take the hit on UK CGT?

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Post by louy » Mon, 04 May 2009 11:30 am

I wouldnt liquidate, especially not in the current market. I am sure / hoping in the next 2 years the property market will start to grow again.

You would be liable to pay income tax on your property income, but only on the taxable part.

So you have allowable deductions such as finance cost (the interest of your mortgage), maintance and professional fees etc.

You will also get the standard UK tax free rate as well.

So you are only paying tax on the taxable income above the tax free threshold.

There are ligitmate options to reduce this for your benefit as well, depending on your situation.

If you have any questions on this or require more details, please do not PM me as I am not a qualified Accountant and I am not able to give professional tax advise.

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