How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14200
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

A UK Ltd is going to buy a freehold property and will

This answer was rated:

A UK Ltd is going to buy a freehold property and will receive rent as income, I haven't understand the rate of depreciation (if exists) and if the rent income will be taxable gross or net after deducting other expenses e.g legal fees or even deprceciation
Thanks in advance


Thanks for your question

A limited company cannot just hold a rental property - there has to be a trade involved (so perhaps its a B&B or a Hotel or commercial property)

So assuming you have a trade then you just declare the rental income less costs to earn this rent - so mainternace, or insurances etc (day to day costs)

Any legal fees associated with the purchase is used when the property is sold to reduce the capital gain (or corporation tax) and there is no depreciation or indexation anymore - this was abolished when the lower capital gain rates were introduced but there is consideration when the business is selling an asset - is this what you mean?



Sam and other Tax Specialists are ready to help you