Any property disposal by individuals other than a principal private residence before 5 April will be taxed as a capital gain in the current tax year. Make sure you elect which property is your main home. The disposal of you main home is free of Capital Gains Tax. Only one property is exempt at any one time.
As all property income is taxed on a fiscal year basis (to 5 April each year) consider dealing with outstanding repairs before 5 April. A claim for tax relief on the cost of repairing or maintain the furniture and fittings in the property is available.
Landlords are currently able to offset all their finance interest; mortgage interest against their rental profits, before calculating their rental profit and therefore tax bill. In 2017/18 the new rule will apply to 25% of the finance costs (with the other 75% deducted in computing taxable profits). In 2018/19 the restriction will then apply to 50% of the finance costs, for 2019/20 it will increase to 75% and from April 2020 the full 100% of the finance cost will be ‘disallowed’.
Property income is calculated for tax purpose on the ‘accruals basis’ unless income is less than 15K
For the property to qualify as Furnished Holiday Lets the rules are as follow;
- available to let as holiday accommodation for at least 210 days
- actually be let as holiday accommodation to the general public for at least 155 days
- must not be let for periods of longer term occupation (greater than 30 days) for more than 155 days