Tax Return Due Date 31st January 2018
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Rental Income changes from 6 April 2016

Harish Verma

Reduction of landlords’ wear and tear allowance

Up to now, landlords with buy-to-let properties have been allowed to claim a 10% wear and tear allowance on any furnished home they are letting, even if they have not had to spend any money on replacement items or refurbishment.

As of 6 April 2016, they can only reclaim what they have spent, which will mean more paperwork for landlords..

Rent-a-room allowance rises to £7,500

The amount that home owners can earn tax-free from taking in a lodger or holidaymaker  increasing by £3,250. Under the new limit, a landlord or landlady can make up to £144 a week without facing an income tax bill.

We will be happy to advise you on how to save Tax on your rental income.

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