Buy to Let Property Tax Advice

Buy to Let Property Tax Advice

Accounting and Taxes on Buy To Lets


There are a number of tax liabilities you will be faced with when investing and renting, hence the need for good Buy to Let property tax advice. The tax liabilities you will come across as you buy, renovate, sell and /or rent out properties

-            Stamp Duty               

-           Income Tax,

-           Capital Gains Tax (CGT)

-           Inheritance tax.

Seeking out a professional tax accountant who has experience with Buy to let property tax adviceis essential to mitigate the various tax liabilities.  The accountant/ appointed tax advisor will ensure all allowable expenses are deducted against your rental income from your Buy to Let property when calculating your annual buy to let property tax bill. If you are selling your Buy to Let property you need to be thinking about Capital Gains Tax.  There are significant exemptions available for Capital Gains Tax mitigation and timing of the asset disposal can also result in considerable savings of capital gains tax. The appointed accountant / tax advisor will we prepare your capital gains tax computations, making sure all your entitlements of claims to reliefs and exemptions are made.


Whether you’re buying, selling, renting or leaving it in a will, an Investment (Buy to Let) property it will be subject to taxation:

Stamp duty Tax – This tax is payable when you purchase a BTL property the percentage of tax payable depends on the value of the property

Income Tax – This tax is charged on all rental income after allowable expenses are deducted. The amount of tax paid is also dependent on the income tax band you are in. This must be declared on your annual Self-Assessment Tax Return under the BTL property tax section. 

Capital Gains Tax - Capital Gains Tax is chargeable on the gain you made when selling a Buy to Let property. The amount of Capital Gains Tax payable is calculated depending on the length of time you owned the property, whether you lived in it and certain deductible expense incurred when you purchased and sold the property such as legal fees etc.


Inheritance Tax – If your estate exceeds the nil rate band for inheritance tax is payable.