Consider the tax advantages

A buy-to-let investment can bring with it a number of tax advantages. As buying-to-let is primarily an investment tax-wise, a Delph Group customer could expect to benefit from the following:

• Currently, individuals are taxed at 40 per cent on any gains above £9,200 in any one tax year - although using taper relief, this rate can be reduced to as little as 24 per cent on assets held for 10 years or more.

The Government have recently announced that, as of 6th April 2008, all capital gains above the personal annual allowance of £9,200 will be charged at a flat rate of 18 per cent - while taper relief will be scrapped. Individuals will no longer need to hold on to their assets for many years to minimise their tax burden.

• Any income you earn from your property is taxed at a flat rate. There is no liability in respect of national insurance.

• If you borrow money to invest in a property, your borrowings are fully tax allowable. So, if you remortgage your home, or take out a loan to finance your purchase you can offset your tax liability against the borrowing.

• If you let your property furnished, you can claim a wear and tear tax deduction annually based on 10% of the annual rent value less the council rates.

• Of course, potential tax benefits vary on individual circumstances. You will need to take expert advice to gain maximum advantage.