IHT: Is Your Property ‘Related’?

Mark McLaughlin highlights a potential problem for married couples and civil partners regarding valuations of jointly-owned property. Valuing assets such as land and buildings is potentially tricky for various tax purposes, including inheritance tax (IHT) on making a chargeable lifetime transfer, or on death. One area of potential difficulty is […]

Property Investment v Property Trading: Pitfalls & Challenges

When looking at property tax there are many different aspects to consider in the main differences between property investment and property trading activities, and their implications from a UK tax perspective. As this is a popular property tax subject, here at Tax Insider we have produced a comprehensive report which […]

Changing Your Mind – Property Trading Vs Property Investing

Alan Pink considers the tax charges that can arise when a trading property becomes an investment and vice versa. Tax planning for property can be fraught with problems, particularly in relation to the all-important question of whether a property-based activity is trading or investment for tax purposes. The distinction is […]

Holiday Villa Accommodation – Is It ‘Commercial’?

Mark McLaughlin highlights a tax case in which HMRC challenged a loss relief claim in respect of a holiday villa. Property businesses that provide residential accommodation tend to be profitable in most cases. However, unfortunately, losses sometimes arise. For example, an individual may incur losses in the early years of […]

Private Residence Relief: When Quality Trumped Quantity!

Mark McLaughlin highlights a recent case in which an individual’s quality of occupation of a property was sufficient to secure private residence relief, despite having occupied it for short periods. Most individuals who dispose of their dwelling-house expect that any capital gain will be subject to private residence relief. Many […]

Holiday Lettings – At Your Service?

Mark McLaughlin looks at furnished holiday lettings in the context of inheritance tax business property relief. Business property relief (BPR) is a valuable inheritance tax (IHT) relief, which is available to business owners if certain conditions are satisfied. The relief applies to ‘relevant business property’, including a business or interest […]

Property Rental Expenses: Your Guess Is As Good As Mine!

Mark McLaughlin highlights a tax case in which HMRC estimated a taxpayer’s property rental business expenses in the absence of sufficient records. Keeping full and proper records of property rental business expenses is an important task for landlords. For example, HM Revenue and Customs (HMRC) could seek to disallow such […]

Private Residence Relief: When HMRC’s ‘Off-Plan’ Arguments Were Off Target

Mark McLaughlin looks at a private residence relief case involving an individual’s delay moving into a dwelling whilst it was being built. The extent to which capital gains tax (CGT) principal private residence (PPR) relief is available on the disposal of an individual’s only or main residence is straightforward to […]

An Inheritance Tax-Free Rental Property Business?

Mark McLaughlin considers the inheritance tax treatment of a rental property business within a trading company. Many individuals would like to have a rental property business, but may be concerned (among other things) about the possible eventual inheritance tax (IHT) liability on the value of the property portfolio. However, a […]