Residential property letting

Residential property letting - 18 December 2008

Tax on rental business profits:
Unincorporated	income tax rates - 20/40%
Incorporated	corporation tax rates - 21/29.75/28%
Tax on chargeable gain on disposal:
Unincorporated	18% on excess over exempt amount
Incorporated	corporation tax rates
Maximum letting exemption relief ¹	£40,000
Landlord's energy saving allowance:
Maximum claim for income tax payers	£1,500
Maximum claim for corporate landlords	£1,500
Basis claimable	claim per property
The availability of this claim is to be extended to 2015
EEA Furnished holiday lettings (FHL):
Must be available for commercial letting for at least	140 days p.a.
Be let for at least	70 days p.a.
Not be let continuously in a seven month period for more than	31 days
Please contact us to discuss the advantages and disadvantages of FHL which will be repealed from 2010/11
Rent a room scheme income exemption	£4,250

Letting relief is available on let property which has been occupied as your main home.
Annual profits are not subject to national insurance.