Landlords fail to take advantage of tax breaks

Date: 14th June 2011

Small businesses operating in the UK's property sector could be advised to seek the assistance of a specialist tax accountancy service following the recent comments of one industry body.

Paragon Mortgages, which specialises in the buy-to-let market, has claimed that landlords are failing to take advantage of the tax breaks that are available to them.

Nigel Terrington, Paragon Group chief executive, says: "Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords' property investments and their overall performance.

"Tax is a complex area and ... it's vital that landlords take advantage of the allowances open to them to maximise their return on investment."

Data from the report showed that 13 per cent of landlords are not claiming for mortgage interest, while one-third do not claim for management of letting fees.

A further 55 per cent of landlords are not claiming for advertising costs incurred in letting their property.

Posted by Jacob Williams