Basis of Taxation of Property Income

  • Like any other business
  • Single business for all properties
  • Tips – often forgotten expenses to claim

Self Assessment

  • Get it right, and on time – or pay the price
  • Ten million Self Assessment tax returns now filed each year
  • Keep your records or risk a £3,000 fine

Tax Penalties for Misdeclaration

  • Big changes from 6th April 2009
  • Personal liability for company directors
  • New system very judgemental

Late filing & Late Payment Penalties

  • Effective 2010-11 return and subsequent returns
  • Payable even if no tax due
  • New harsh penalties

Allowable Expenses

  • Just because you have spent money on your property portfolio doesn’t automatically mean you get tax relief
  • Some items of expenditure never qualify for tax relief
  • Some items of expenditure are only allowable against the gain when you sell the property

Capital Gains Tax

  • Taxation on the profit on the sale of an asset
  • Many reliefs if the property has been your principal private residence

Leaving the UK

  • Don’t forget to tell the taxman when you go
  • You may continue to get personal allowances
  • Special rules for Capital Gains Tax

Residency and Domicile

  • No governing law for Domicile
  • Different rules for different taxes
  • New rules for UK residents who are non-domiciled

Non-resident Landlord

  • Withholding tax scheme
  • Individuals may get personal allowances


  • Annual Tax on Enveloped Dwellings (ATED)
  • Stamp Duty Land Tax (SDLT)
  • Capital Gains Tax (CGT)

Council Tax

  • A system of local taxation
  • Collected by the local authority
  • A tax on property, levied on people


  • Payment for an asset – the lease
  • Not to be confused with rent paid in advance
  • Part subject to income tax up to fifty years term, balance subject to Capital Gains Tax

Annual Tax on Enveloped Dwellings

  • Only applies to property held by non-natural persons eg a company
  • Many reliefs and exemptions but you need to register and complete returns to claim them

© Landlords Tax Services Ltd 2016 All Rights Reserved - In an article such as the one on this page we can only give brief general guidance and cannot cover all situations. This guidance may not cover all your personal circumstances and so you should not rely on it. Before taking action or not, always do your own specific research and seek appropriate professional advice which takes into account your personal circumstances, with the full facts of the case and all documents to hand. Neither Maurice Patry F.C.A. nor Landlords Tax Services Ltd can be held responsible for the consequences of any action or the consequences of deciding not to act.