What Solihull Landlords Need to Know About the Latest Property Tax Changes

 


Do you know the newest rules that are being implemented for landlords in Solihull? Each year, the administration brings some reforms and regulations that make it difficult for property owners to earn some extra profits while staying compliant. Whether you are renting a property or an entire mansion, knowing about new rules is necessary for some tax saving. That's why you need to get in touch with an expert accountant in Solihull for clear guidance, the right planning and knowledge about some tax-saving moves. In this blog, we will discuss some changes in laws to save your day.

Latest property law updates in Solihull

●      Mortgage interest relief has changed yet again.

The first update is done on mortgage interest relief. For many years, landlords weren't allowed to reduce any interest as a business owner; instead, they only got a basic rate tax credit. This wasn't any new law, but it has severely impacted the owners, as they consider this a very high rate, especially for taxpayers in Solihull. But what now? Now, the tax bill might be higher as per expectations, but if you have a mortgage, the real profits will be very different. That's why, to thoroughly understand this rule, you need to hire an expert accountant in Solihull to calculate any missed projections and unpleasant surprises.

●      Making tax digital being rolled out

HMRC has also joined the race in making the accounts department more digital and secure. With the new campaign, Making Tax Digital (MTD), they are implementing new rules for landlords. In this, if your income is more than the threshold limit, then you need to maintain all the records digitally and submit them once a quarter. According to this law-

●       No need for handwritten ledgers

●       No last-minute paperwork

●       And software is necessary for every business to do all the paperwork digitally.

This law has caused many issues for owners who don't know how to use the computer or particular software programs. And the transition from paper books to digital format might take time. But hiring a good accountant can help you in saving time, keeping all records handy at all times and ensuring compliance from day one.

●      Changes to capital gains tax (CGT)

The next rule and update is in the capital gains tax. If you are lowering the annual allowance or modifying the reporting deadlines, then you will face higher CGT bills and tighter submission windows. This law is necessary in the city's strong property market, where landlords want to resell properties at higher values. Owners need to properly understand how this CGT works and how to legally lower the value by hiring good accountancy services.

Conclusion

Landlords in Solihull cannot afford to rely on antiquated information or conjecture due to the increasing complexity of property tax.  Maintaining compliance with changes in digital reporting, permitted expenses, capital gains tax, and mortgage interest classification calls for professional assistance.  Collaborating with an expert accountant in Solihull guarantees that you understand all regulations, make all allowable deductions and safeguard the profitability of your rental property. Having the right counsel is not only beneficial but also necessary in a market that is changing quickly.

 

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