Due to our location on the beautiful Devon/Dorset border we have many clients with property interests, those with holiday rental accommodation and second-home owners.
Owning more than one property, whether for pleasure or business purposes, has tax implications. This can be a confusing area so it’s advisable to get professional accountancy help to make sure you only pay the right amount of tax.
If you rent out furnished holiday accommodation then you’ll have specific accounting and taxation needs. You’ll be liable to pay tax on your rental income so will need to prepare annual accounts and submit a self-assessment tax return.
We can take care of your annual rental accounts for you to ensure your income tax returns are accurate and submitted on time. We’ll make sure that all allowances and expenses are applied so that you don’t pay any more tax than you need to.
We can also prepare and submit your self-assessment tax return.
If and when you come to sell your holiday let we can also advise you on capital gains tax relief to minimise your tax liabilities.
If you’re a homeowner with more than one property you’ll have to pay capital gains tax when you sell your property, which isn’t your own home. The laws and regulations regarding capital gains tax are quite complicated, with certain personal exemptions and reliefs depending on your circumstances.
We recommend you get some advice from us before you agree a sale on your second home. We can review your situation and may be able to help reduce your capital gains tax liability.
Property Management Companies
If you own a property which is part of a larger property you may need to have service charge accounts prepared. We are happy to assist with this. Please do get in touch and we will talk through a tailor made solution for you or your company.
– All income must be declared to HMRC
– Furnished holiday lets may qualify for certain tax advantages
– Capital allowances can sometimes be used to reduce tax
– Capital gains tax may be due if you sell your property for more than you paid for it