ARLA: Buy-to-let taxes are straightforward

Most buy-to-let investors have fully considered all the tax implications of their properties, a spokesperson for the regulatory body for letting agents in the UK said today.

Malcolm Harrison, spokesperson for the Association of Residential Lettings Agents (ARLA), remarked that the "typical" buy-to-let investor is "a mature financial individual" who has lawyers advising them and "understand[s] exactly what [they're] doing".

Landlords are liable for tax on the profit from their property, as well as tax on any capital gain, he explained.

"To all intents and purposes, it's a straight-forward investment, as far as tax is concerned," said Mr Harrison.

His comments come following news reports which suggested that some landlords may not be filling out there tax forms properly.

Recently, Leonie Kerswill, a tax partner with accountant PricewaterhouseCoopers, told LandlordExpert.co.uk that most errors result in favour of HM Revenue & Customs, because the investor has not claimed all their allowances.

He advised landlords to double-check their taxes to make sure they are receiving all possible benefits.

ARLA was formed in 1981 and currently has 1,800 member offices throughout the UK.

Agents who demonstrate that they have a "thorough knowledge" of the profession and following best practices are eligible for membership.

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