Get a Valuation
    Register
    Address required
    Search
    LogoLogo
    • LETTINGS
    • BLOCK MANAGEMENT

    Our Branches

    Ashford

    5 Kings Parade,
    Ashford, Kent
    TN24 8SQ

    T: 01233 632383
    E: ashford@skippers-ea.co.uk
    Area Guide

    New Romney

    55 High Street,
    New Romney, Kent
    TN28 8BY

    T: 01797 362898
    E: newromney@skippers-ea.co.uk
    Area Guide

    Cheriton/Folkestone

    30 High Street,
    Cheriton, Kent
    CT19 4ET

    T: 01303 279955
    E: cheriton@skippers-ea.co.uk
    Area Guide

    Lettings

    Get in touch

    Lettings

    Taxing matters for landlords in 2022

    over 3 years ago

    ‘Tax doesn’t have to be taxing’ is a favourite slogan of HM Revenue & Customs and it’s true! For many people, paying tax and working out VAT is an aspect of our daily lives that someone else works out on our behalf.

    If you’re a landlord or property developer, however, you are classified as a business owner who is responsible for their own tax bill and possibly VAT too. While a good accountant is vital when it comes to filing returns and reducing bills, understanding the relationship between tax, VAT and property before you invest and during a tenancy is key to healthy yields and profits.

    This year will see landlords settle into a new tax and VAT pattern, and while we can’t predict what the Chancellor may introduce later in 2022, here are 6 things we do know:

    Mortgage interest tax relief changes are in full effect
    The tapering of mortgage interest tax relief is complete and from now on, landlords filling in their self-assessment tax return will only be able to offset 20% of their mortgage interest payments against their tax bill.

    There’s more time to report & pay CGT
    When a landlord sells a buy-to-let property, there is usually CGT (Capital Gains Tax) to pay. This year has already heralded a positive change to how landlords report profits gained from selling additional properties and how long they have to pay the CGT bill. The timeframe has been extended to 60 days, up from the previous 30.

    The tax liability notification period may shorten
    The Government is keen to boost its coffers and it is consulting on an Income Tax Self-Assessment reform, which would prompt landlords to pay taxes due more quickly. At present, landlords have six months to notify HMRC of a tax liability if they’re making money from additional properties but this timeframe may be reduced to something much shorter, possibly one month.

    Stamp duty may rise for mixed-tenure purchases
    Property investors with one eye on the High Street should plan for a possible SDLT (Stamp Duty Land Tax) hike. The Government wants to change how mixed-tenure purchases – such as a ground floor retail unit with a residential flat above, sold as one transaction – are taxed. Currently, purchasers pay lower commercial rates of SDLT on the entire purchase but the proposed change would see the residential part taxed at the higher residential rate.

    5% VAT for developer landlords is available
    Landlords who engage in development and conversion work before they let out a property still have access to more flattering rates of VAT. Building work to change a commercial premises into a residential buy-to-let home may attract 5% VAT, while developing student accommodation could see VAT reduced to zero in some cases.

    Reduced VAT rates for providers of holiday accommodation ends soon
    One of the Government’s pandemic rescue packages saw suppliers of holiday accommodation – including short Airbnb lets – pay a reduced rate of VAT but this benefit ends on 31st March 2022. As of 1st April 2022, the VAT rate will rise from 12.5% to the pre-pandemic standard rate of 20%.

    Still find tax taxing?
    As buy-to-let and property specialists, we can advise on all matters of lettings, including tax and VAT. Get in touch and we can help you find financial efficiencies and run profitable property investment portfolios.

    Share this article

    More Articles

    Garden advice: the dos and don’ts for tenants this summer

    Garden advice: the dos and don’ts for tenants this summer

    Published about 1 year ago

    We all know gardens were the feature of choice among tenants moving home during the pandemic but a new survey shows how our love for the great outdoors hasn’t dimmed.

    Read More
    Garden advice: the dos and don’ts for tenants this summer

    Garden advice: the dos and don’ts for tenants this summer

    Published about 1 year ago

    We all know gardens were the feature of choice among tenants moving home during the pandemic but a new survey shows how our love for the great outdoors hasn’t dimmed.

    Read More
    The 5 Ps every tenant should know when viewing a rental

    The 5 Ps every tenant should know when viewing a rental

    Published about 1 year ago

    Renting gives people the flexibility and freedom to move to different areas and properties as their lifestyle requires. There are, however, some rules to follow. Knowing what is and isn’t possible can help narrow down the choice of rentals available.

    Read More

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    BRANCHES 

    Ashford
    Cheriton/Folkestone
    Lettings

    USEFUL LINKS 

    For sale
    Top Selling Tips
    Lettings
    About us

    MAIN BRANCH 

    5 Kings Parade,
    Ashford,
    Kent TN24 8TA
    t: 01233 632383

    OnTheMarket
    RightMove
    ThePropertyOmbudsman
    TradingStandards
    Zoopla
    Logo
    © 2025 Skippers
    Privacy policy|Terms & conditions|Complaints Procedure|CMP Certificate|CMP Security Certificate|Landlord Fees|Tenant Information|Draft tenancy agreement
    Powered by