If you rent out a property then you have an obligation to inform HM Revenue & Customs on any profit or loss made from this activity. This is no different from any other activity where you make a profit or loss, however, the tax treatment for income from property is considerably different than for any other type of business, with restrictions on the amount of tax relief on finance costs and capital expenditure.
If you are a serious investor in property, or a higher rate tax payer, then the way you structure your property portfolio can make a huge difference between the amount of profit that you keep and the amount of tax you have to pay.
At FD Accountants we can prepare your accounts and tax returns for income you have received from property letting. We can also review ways for you to reduce your tax liability.