t: 0333 3447850e: hello@redkeylets.co.uk
    Get a Valuation
    Register/Report a repair
    LogoLogo
    • Testimonials
    • Blog
    • Contact

    Branch Details

    Our Branch

    21 Bridge Street, Newport, NP20 4AN
    e: hello@redkeylets.co.uk
    t: 0333 3447850
    Newport Area Guide

    Looking to buy or sell?

    Please visit our sister branch,
    Fortis Properties

    Out of Hours Emergency

    An emergency repair would include issues that need to be fixed as soon as possible. Examples would include: burst pipe/flood, fire, vandalism, broken locks, blocked drains, blocked toilet and no heating/hot water. Anything that would be a danger to your health and safety or likely to cause damage to the property.

    In the event of an emergency during a holiday period – or outside office hours – please follow the guidance below.

    Smell Gas?
    In the event that you smell gas open all the windows, turn the gas off at the meter and call National Gas Emergency Service on 0800 111 999
    For all other emergency issues, please call 01633 742371 and our friendly team will assist you.

    Home/News/Property Taxes: A Guide for Landlords in Newport

    Property Taxes: A Guide for Landlords in Newport

    almost 2 years ago
    Lettings
    Property Taxes: A Guide for Landlords in Newport

    Are you Finding Property Taxes Complicated?
    If you’re a new landlord in Newport, you may find property taxes complicated and overwhelming. At Red Key, we are ready with some expert advice to help you better understand your obligations.

    Adding Income From Property To Other Income
    There’s a common misconception that any rental income you earn from your rental property in Newport will be taxed separately from your other income from shares or employment. However, that isn’t the case. While your property expenses and income are recorded on a separate area of the Self-Assessment form, your profit is added onto your other income to work out your total tax bill.

    For that reason, it’s always sensible to calculate your likely property expenditure and income figures annually before investing in property. That will enable you to check whether your profit will likely take you into the next income tax bracket.

    Another thing to remember is that additional income you receive from the property may mean you can no longer receive benefits such as tax credits or child benefits.

    Recording Your Expenses
    When completing a tax return, you should remember that some allowable costs can be deducted from the income you receive from your rental profit to reach your taxable profit amount. However, renting out your property and the money you spend on it are split between two categories.
    You can offset “Revenue Expenditure” against the income you receive from your rental property. These expenses must have been exclusively incurred to earn rental income, for example:

    • Maintenance services like gardening or cleaning
    • Business administration costs
    • Repairs and redecoration
    • Insurance
    • Fees for any professional services (e.g. an accountant or lettings agent).

    “Capital Expenditure”, on the other hand, is subtracted from your capital gains when you decide to dispose of your property. Those are things which increase the property’s value, for example:

    • Adding an extension.
    • Upgrading the kitchen.
    • Carrying out major renovations.

    Of course, some works include both expenditures, making recording expenses more complicated. Therefore, it’s wise to use an accountant’s services.

    Higher Capital Gains Tax
    Although tax is levied at 10% (at basic rate) or 20% (at higher rate) on your chargeable gains on your other financial assets, tax on gains from residential property is levied at 18% or 28%, depending on your tax band. You need to factor this in when planning the exit strategy for your property investment.

    Capital gains tax is levied on the difference between your property’s original purchase and sale prices, with allowable deductions and personal allowances subtracted. It isn’t charged on how much equity you have remaining. Therefore, if you decide to remortgage the property at some point to release capital, you should always ensure you have sufficient equity remaining to cover your CGT bill should you suddenly need to sell.

    Handling the financial side of your rental property can be a challenge, but you can rely on our expert team at Red Key to simplify the day-to-day management of your property. As experts in the Newport rental market, we make it easy for local landlords to maximise their investment.

    Call us today on 03333447850 to learn more.

    Share this article

    More Articles

    Electrical safety in the lettings spotlight

    Electrical safety in the lettings spotlight

    Published 1 day ago

    Keeping tenants safe is of paramount importance and there is legislation that ensures the UK’s privately rented homes are fit for habitation. An important milestone in England has brought one area of safety back into the spotlight.

    Read More
    Short-Term vs. Long-Term Leases for Landlords in Newport & Cardiff: What's Best for Your Rental Property?

    Short-Term vs. Long-Term Leases for Landlords in Newport & Cardiff: What's Best for Your Rental Property?

    Published 1 day ago

    As a landlord in Newport or Cardiff, deciding on the ideal lease length for your rental property is a strategic decision that impacts everything from your cash flow and tenant turnover to the amount of time you spend on property management.

    Read More
     Landlord's Guide to Rental Property Repairs: Navigating Your Obligations & Tenant Requests

    Landlord's Guide to Rental Property Repairs: Navigating Your Obligations & Tenant Requests

    Published 5 days ago

    For landlords in Newport and Cardiff, managing rental property maintenance and repairs can often feel like a juggling act.

    Read More

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    Services 

    Renting with us
    Residential Lettings
    Portfolio Management
    Block Management

    Area Guides 

    Cardiff CF5
    Cardiff CF11
    Newport NP19
    Newport NP20

    Main Branch Details 

    Red Key, 21 Bridge Street,
    Newport NP20 4AN
    t: 0333 3447850
    Email us

    ARLA
    OnTheMarket
    PrimeLocation
    SafeAgent
    ThePropertyOmbudsman
    Zoopla
    Logo
    © 2025 Red Key Property Services
    Privacy Policy|Terms & Conditions|Cookie Policy|Complaints Procedure|CMP Certificate|CMP Security Certificate
    Powered by