NEWS

Tax changes for landlords presentation

Residential property owners had the opportunity to ask about the tax changes which will affect them from next April.

Speaking at an event for private landlords based in the Portsmouth area, Morris Crocker’s property tax specialist, James O’Leary, summarised the key points and explained what impact they will have.

From 6^th April 2020 there will be changes to Capital Gains Tax (CGT) for residential property, including Principle Private Residence Relief, letting relief and the procedure for reporting transactions to HMRC.

The main concern to those attending the event were the rules first introduced in 2017, to be fully phased in by 2020, regarding tax relief on finance costs. As these changes will not affect limited companies, many landlords asked if incorporating their business or purchasing new properties through a company may be efficient from a tax perspective.

Keeping good accounting records is essential for landlords and many were interested in Xero, the online accounting software which we provide. There were also questions for James about electric cars, inheritance tax issues and pension contributions.

The event was held by the Portsmouth and District Private Landlords Association on Monday 14 October 2019 and was attended by 65 of its members.

16/10/2019