HOME-OWNERS & PROPERTY INVESTORS - 2023/24 TAX YEAR

Property Notify has written a fantastic article on what home owners and property investors need to know about the 2023/24 tax year - how is affects them and what to expect.

As they say, it's a great time for both home owners and investors to review their finances and tax liabilities to ensure that they have a full and clear understanding of the tax landscape ahead for this year.

As of 6th April 2023 and the start of the new tax year there are some changes to how income and profits are taxed that will take effect. This will affect higher earners and those letting via a limited company the most.

This is a round-up of what you need to know for 2023/24 as a landlord and property investor:

Corporation Tax is rising

If you let your properties via a limited company and have annual profits of more than £50,000, you need to be aware that the rates are rising from 19% to 25% for companies with profits over £250,000. Profits between £50,001 and £250,000 will be taxed at a graduated rate through marginal relief applied to the 25% rate, while companies making up to £50,000 in profit will continue to be taxed at 19%.

Dividend Allowance reducing

Dividend income from shares is being affected with the tax-free allowance cut from £2,000 to £1,000 for the 2023/24 tax year and then to £500 for the 2024/25 tax year.

Personal Allowance Remains

Your personal allowance will remain at £12,570 and while this isn’t a change for 2023, it is a change from the norm because usually, the Personal Allowance goes up each year to reflect inflation in order to maintain the value of the allowance.

To read about more changes and see the full article, click here