SAFETY & TAXATION

SAFETY

In general the landlord is responsible for ensuring that the property, and any contents provided are safe and fit for their intended purpose. More specifically, landlords should make themselves aware of their responsibilities under the following legislation:

1. The Gas Safety (Installation and Use) Regulations 1994.
2. The Furniture and Furnishings (Fire)(Safety) Regulations 1988.
3. The Electrical Equipment (Safety) Regulations 1994.

Hamilton Wood will explain your obligations and ensure that the regulations are adhered to. A Fact Sheet is available on each of these important items of legislation.

TAXATION

Income tax is payable on profit arising from letting. Profit is assessed by deducting allowable expenses from the rent received. These will include:

- Personal allowances (if applicable)
- Mortgage interest excluding tax relief
- Agents fees
- Water rates paid by the landlord
- Insurance premiums related to the property and the letting
- Repair bills
- Ground rent and service charges
- Legal and accounting charges
- Wear and tear (10% of rental income during that tax year)

It is the landlord's responsibility to declare the rental income in their annual tax return under the rules of self-assessment.

If the landlord is going abroad the Inland Revenue will almost certainly regard him as non-resident for tax purposes. Although tax liability is calculated in exactly the same way as with U.K. residents, the system is operated in a different way. Should you require further information please speak to your qualified accountant.