The tax rebate is a refund of taxpayer money after a retroactive tax decrease which encourages taxpayers to make certain types of purchases or to stimulate a failing economy by quickly getting cash into the consumer’s hands. Unlike tax refunds, tax rebates the taxpayers do not have to wait until the end of a financial year you can receive payments at any time of the year.
The government counts on tax rebates especially when there is economy slow down because of the boost the economy. There are different types of tax rebates such as uniform tax rebate, teacher tax rebate, healthcare worker tax rebate, trade worker tax rebate, mileage tax rebate and landlords tax rebate among other but in this article, we are going to talk about a tax rebate for landlords.
Tax rebate for landlords is money refunded to residential landlords for properties for financial cost. In earlier years the landlords have been getting this tax relief, but it was amended, and some restrictions were imposed on the full benefits were phased out on April 2017, and it was restricted to the basic rate of tax. This move is going to affect some landlords but not others
Those affected include UK residents that let residential properties in the UK, non-UK residents who allow residential property in the UK, individuals who enable properties in partnership, beneficiaries of trust liable for Income Tax on the property profits. These changes will affect owners of residential properties as an individual, or in partnership or trust. The changes will affect how you receive relief for interest, and other finance cost and the changes will be gradually introduced over four years as from April 2017.Some of the finance cost restricted include interest on mortgages, loans, overdrafts, alternative finance returns, fees and another incidental cost for getting or repaying mortgages and loans, discounts, premiums and disguised interest.
Those not affected by this move include UK resident company, non-UK resident companies, and landlords of Furnished Holiday Lettings.
If you are still under the brackets of those not affected and you want to make your tax rebate claim, you should fill out a self-assessment tax return either online or printing it and posting it to the HMRC (HM Revenue and Customs) offices. It is good to know that you can only claim by filling this specific form at any time of the year.
After making claims, you have to wait for a response from the HM Revenue and Customs which will take about five weeks for making an online claim and six weeks after making a postal application and if it takes longer than that you can contact the HM Revenue and Customs offices.
In conclusion tax rebates can help boost the economy especially if it is failing it gives the consumers the ability to buy more or access more products and in return affecting the economy positively.