The report considers a number of ways in which income tax for landlords of residential property might be simplified. The finding are summarised under the following headings:
- Furnished holiday lettings, in which the report questions the benefit of retaining the current regime.
- Repairs, replacements and improvements, in which the report asks for clearer HMRC guidance and invited a broader form of income tax relief for property costs.
- Jointly owned property, where the report recommends a stricter alignment of profit shares with beneficial ownership.
- Making Tax Digital, where the report has a number of recommendations, including a request for a higher gross income threshold until various other quirks have been resolved.
- Diversified agricultural-based businesses, where the report seeks a reduction in the complexity of rules applying to diverse rural businesses.
- Non-UK residents, where the report invited the government to review the policy of tenants withholding tax.
Related content from Claritax Books
The rules for FHL properties are covered in great depth in Furnished Holiday Lettings, by John Endacott.
For broader coverage of the tax rules for investment properties, see Property Investment by Satwaki Chanda.
