Why A Property Company May Be A Bad Idea

The Tax Insider Team considers the drawbacks of the popular property holding company structure – and considers a possible alternative. Of course, there are other reasons, not related to tax, why you might want to set up a limited company to hold a property portfolio. But we’re going to stick […]

That’s A Relief! Replacement Of Domestic Items

The Property Tax Insider team explains how landlords can obtain tax relief when replacing certain domestic appliances. Where a landlord lets a property, domestic items may be provided as part of the let. Where the let is unfurnished, this may only include curtains and minimal white goods, whereas in a […]

Interest Relief For Landlords – Where Are We Now?

For tax years before 2017/18, obtaining tax relief for interest and financing costs was relatively straightforward – landlords simply deducted them in calculating their rental profits. The beauty of this system was that the landlord received the tax relief at his or her marginal rate of tax. For example, if […]

Does Incorporation Stack Up For Landlords?

Lee Sharpe warns that landlords should not rush into incorporating their businesses without weighing up the ‘pros’ and ‘cons’. It seems you cannot have a discussion involving landlords these days, without somebody mentioning incorporation. I have to admit to being partly responsible for this, with a fair few articles, etc., […]

Putting An Investment Property In Joint Names Before Sale

Sarah Bradford looks at when it can be beneficial to transfer an interest in an investment property to a spouse or civil partner prior to sale. The tax system affords some tax breaks to married couples and civil partners and it is possible, depending on personal circumstances, to use these […]

Maximise Tax Relief When ‘Doing Up’ Your Buy-To-Let

Sarah Bradford explores the tax reliefs on offer when renovating a buy-to-let property. Buying a property to renovate and then let out, can be an attractive proposition, particularly where the buyer has the skills to undertake a lot of the work him or herself. However, while the aim is to […]

Transferring Rental Income To A Lower Tax Paying Spouse: The ‘Settlements’ Trap

Alan Pink considers an anti-avoidance barrier to sharing income between spouses for tax purposes. A lot of other countries tax the income of married couples in a different, and arguably much more sensible, manner. Rather than taking each of the spouses as a separate individual, they charge tax based on […]

Taxing Times? Investing In A Student House

Sarah Bradford examines whether investing in a property for a student son or daughter to live in whilst at university is worthy of consideration. Student accommodation is expensive, and your student offspring may pay between £150 and £225 a week, depending on where they study. Renting is, for the tenant […]

Impact Of New Cash Basis On Tenant Deposits Explained

Lindsey Wicks examines the tax treatment for landlords of security deposits. The tax treatment of security deposits received by landlords has been thrown into the spotlight by the consultation on the cash basis becoming the default method of taxation for eligible unincorporated property businesses, which was expected to be introduced […]

Cash Basis For Landlords Explained

HMRC’s ‘making tax digital’ (MTD) strategy aims to transform the UK into one of the most digitally advanced tax administrations in the world. Under the proposals, businesses and landlords will be required to maintain digital records, and to provide digital updates to HMRC quarterly. For this to become a reality, […]