Mortgages & Income Tax
Banks and other financial institutions like you to consult them before letting your property. It is likely that it is a condition of your mortgage and as a result you should seek their consent before letting. They may check the Tenancy Agreement and copy references before the tenancy is introduced. There are normally no problems with a fixed term agreement. In many instances banks may require you to pay a fee for giving consent.
You are liable to pay tax on rental income. Tax is due from the rent received minus expenses.
Landlords remaining in the UK
Landlords living in the UK or working for a UK employer (and paid in this country) are responsible for their own tax affairs connected with rental income.
Landlords moving overseas or from overseas
We recommend that if landlords are moving overseas, they should appoint an Accountant to be responsible for account preparation and returns to the Inland Revenue.
The Finance Act 1995 created a new scheme for taxing the property income of non-resident landlords. This came into effect from 6 April 1996.
To download NRL1 Form Guidance Notes, click here
To download a NRL1 Form, click here
Building and Contents Insurance
You should inform your insurance company that you are intending to let your property and therefore continue to maintain your buildings cover.
We will notify you of any accidents to your property that may involve any expense or an insurance claim. The exception will be in an emergency. In this case we will take the necessary steps to protect the property and the costs for this may not be covered by your policy. If this is the case we will charge this amount to your account.
We recommend that you maintain contents insurance. This is regardless of whether the property is let fully furnished or only with carpets, curtains and some appliances. The reason is that contents insurance cover will normally protect against third party claims should an accident take place. We strongly recommend that you inform your insurance company of any changes and in addition, inform them if we are appointed Managing Agents.