Landlords of commercial property can still use the cash basis – this is the default for individual landlords with less than £150,000 in rental receipts. Please see the article “Cash Basis for Landlords”

Landlords can elect to use the accruals basis. Please see the article “Accruals Basis for Landlords”

Mortgage Interest

The restrictions on residential mortgage interest relief do not apply to commercial property loans. Relief is given in full for interest paid on commercial property loans.

VAT

Commercial property lettings are an exempt supply. This means that landlords do not charge VAT on rents and also cannot claim back VAT paid on expenses.

A landlord can choose to opt to tax the building.  This would mean that VAT at the standard rate of 20% would be added to the rent invoices.  An opt to tax on a building allows the owner to recover any VAT paid on the expenses incurred in running the business.

Purchase/sale of a property

Stamp Duty Land Tax (SDLT) is charged on the VAT inclusive sales price.  Choosing to opt to tax a building will therefore increase the SDLT charge.