Landlords warned good tax planning is key

In this uncertain economic climate it is more important than ever for landlords to ensure they make use of their taxable allowances, industry experts warn.

Research by Paragon Mortgages, a specialist buy-to-let mortgage company, explained that landlords simply cannot afford to be ignorant in the current market.

Paragon Mortgages managing director John Heron says: "Good tax planning is key. How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability."

Over half the landlords questioned said they had improved the insulation of a property they rented out, but only 14 per cent knew about an allowance available to help pay for it.

According to the guide produced by Paragon, there are various areas landlords can make savings on including mortgage interest, water rates, insurance and service charges.

The advice comes in the wake of calls from the government to reduce the VAT on repairs and maintenance of rental property to raise standards.

Property Investment News posted on 27/05/2008 16:07:46