Are there any tax implications to Buy to Let?

If you buy a property for cash, are there any tax implications to this idea? Any thoughts or advice on a buy to let will be sincerely grateful.

Asked on Apr 2 2010, House Prices in New Malden | Report content

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  • The fact that you buy it with cash is neither here or there really. On an ongoing basis the income generated is liable to income tax but you can offset the costs of maintenance including agents fees etc. See here for a basic guide: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013435 You may be liable for capital gains tax as and when you come to sell the property. There is an annual tax free limit currently £10,000. After wich you would pay 18% on the profit,

    Web reference: http://www.hmrc.gov.uk/CGT/intro/basics.htm#6

    Answered on Apr 8 2010, Report content

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