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 […]
Over the past few weeks we’ve been thinking about how to structure our property businesses and this week we’re going to think about whether we should separate our activities into different companies and why. I’m often asked by investors if they should have just one company and within that company […]
Since Section 24 (which you can read about here), the UK tax landscape has changed. Following George Osborne’s decision to stop investors and landlords from offsetting mortgage interest when calculating the profit made from buy to let properties, the panorama has shifted. Whereas before it was considered tax efficient to […]
In my last blog post here I was thinking about how our property strategy and aspirations affect our tax bill and this week, I’m going to look at how our tax bill has changed since the amendments to Section 24. To start off, let’s set the scene by looking at […]
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 […]
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 […]
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 […]
Despite being designed to attract investment from overseas investors over 50 years ago, a tax policy is set to be withdrawn following the announcements within the recent budget. Creating widespread disapproval, the Chancellor has revealed that non-UK residents will be subject to UK tax charges when selling their residential and […]
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 […]
As of the 6th April 2017, landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their profits. Instead, they will receive a basic rate reduction from their income tax liability for their finance costs. What does this mean for […]
