BUY to LET: 

Whilst the downturn in the economy has depressed the housing market, investment in let property is still flourishing, due to the provision of buy to let mortgages. This special facility enables buyers to acquire one or, more house properties for the sole purpose of letting on the rental market.

There are many tax advantages in investing in let property; by receiving tax allowances on the interest paid on loans for the purchase, repair and improvement of property, as well as providing deductions for insurance, repairs and utility costs. Upon sale, there are numerous deductions available in calculating capital gains tax, should an overall profit be made during the period of ownership.

These deductions can be increased, where a property has been occupied as the owners’ home at some time whilst owned.. It should be appreciated that H M Revenue & Customs have recently focused their attention on property owners who have let their properties and fail to declare rentals in their tax returns. If in doubt ask your Tax Advisor.