Property Novice using Airbnb

by Readers Question

11:24 AM, 11th July 2017
About A year ago

Property Novice using Airbnb

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Property Novice using Airbnb

I have a 2nd property in Brighton that I Airbnb. I wanted to do this so the property is free when I want to stay there for holidays and weekends away.

It has proved quite successful and is making a healthy profit each month, I am now concerned because I am a 40% taxpayer and this means any income from the flat I will also have to pay 40% tax on.

My question is, am I better off putting the flat into a business so its not on my personal income? Is this allowed / possible? I am such a novice, I’m really nervous about all of this and would really appreciate any advice anyone has.

Many thanks.

Vikki



Comments

Neil Patterson

11:28 AM, 11th July 2017
About A year ago

Hi Vikki,

You need an accountant and a good one will nearly always at least save you what they cost.

However, if you were now to effectively sell your property to a Limited company you would pay Stamp Duty again and possibly CGT figures dependent. Once you have been through the figures with an accountant and considered the above additional costs, corporation tax and dividend tax you may have second thoughts.

Please see out tax planning page >> https://www.property118.com/tax/


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