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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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., […]
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 […]
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 […]
Here we look at the rules for claiming tax relief on expenses incurred before you first let a property. Landlords know that the easiest time to update a property is before it is first let. But, however necessary the work, will HMRC say it is capital expenditure that cannot be […]
