Taxation
As a landlord, you’ll have to declare your income and costs - whether you make a profit or not - and keep all records, invoices, receipts and statements for up to six years.
Request and complete the Land & Property Supplementary pages for your tax return and the easy to follow notes from http://www.hmrc.gov.uk/saemployees/fagsa105.shtml
You’ll find that the taxman is actually quite generous in allowing you to offset a large number of running costs including interest payments on your mortgage and the arrangement fee on the mortgage too.
Where you make a loss on you buy-to-let property, you can carry forward and set it off against rental profits in future tax years (but you can’t set if off against other income).
When you come to sell, there are a number of reliefs that are available that reduce the amount of tax you may have to pay on any capital gain you’ve made on the property, including Letting Relief and Capital Gains Tax Allowance.
This can be a bit more complex so if you need to know more, you are advised to contact Inland Revenue.