Alexander Hall Mortgages Buy-to-Let Tax implications for buy to let properties

Tax implications for buy to let properties

Tax will be charged on income received from rental properties after allowable expenses are deducted.

However, you are eligible for tax relief on the following:

The interest on the mortgage
Rental insurance
Any maintenance of the property
Letting agency fees
10% of the rental income each year to cover depreciation in the value of furnishings, including sofas and carpets (this does not include fittings such as kitchen units and bathroom suites)

For more information on tax implications of renting property, you can contact your local tax office for a copy of the Inland Revenue Property Income Manual (PIM).

Need more information on buy to let mortgages?

Our specialist buy-to-let mortgage advisers are happy to answer any further questions you have on mortgages for rental properties. Call us on 08000 38 37 36.

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Buy-to-let mortgages: Guide to Buy-to-Let mortgages; Best Buy-to-Let mortgage deals; Buy-to-Let mortgage quote; Contact us

Buy-to-let calculators: How much can I borrow?; Rent calculator

Buy-to-let mortgage advice: Buy-to-Let mortgage advice; Factors to consider when buying to let; Additional letting costs; Letting process; Buy to Let tax implications; Dos and Don'ts of Buy-to-Let mortgages

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Alexander Hall Associates Limited is authorised and regulated by the Financial Conduct Authority for pure protection, residential mortgages and general insurance business. You can check this on the FCA's Register by visiting the FCA's website www.fca.org.uk or by contacting the FCA on 0800 111 6768.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

We do not charge a fee for residential mortgage advice. We charge an administrative fee for processing each of your mortgage contracts; our fees only apply when you decide to go ahead with an application.

Standard residential mortgages
For standard residential mortgage contracts the typical fee is £499, payable on application. Alternatively, you may pay a fee of 1% of the mortgage loan, payable on application, and any commission received from the lender will be returned to you after completion.

Buy-to-let mortgages
For buy-to-let mortgages a typical fee of 0.5% of the mortgage loan size applies of which £500 is payable on application with the balance payable on completion.

Offshore and commercial mortgages
For offshore and commercial mortgages a typical fee of 1% of the mortgage loan size applies of which £500 is payable on application with the balance payable on completion.

Impaired credit lending
For impaired credit lending the typical fee is 1% of the mortgage loan, payable on application. Alternatively, you may pay a fee of 3.5% of the mortgage loan, payable on completion, and any commission received from the lender will be returned to you after completion.