Tax Insider is a new venture from TaxationWeb, the UK's leading independent tax portal.
Property Tax Insider
Property Tax Insider
Each month our tax experts reveal tax strategies to help minimise your property taxes.
- FREE 3 Issues - The current issue and the previous two issues delivered to your doorstep. Click here to see tax strategies.
- FREE Report - A copy of our popular e-Report 'Landlords - How to Maximise Property Tax Reliefs' (online price £9.97 + VAT).
Here is what our tax experts are sharing with you in this month's magazine:
- New for Old! The End of the Renewals Allowance
The tax legislation provides for a deduction for the cost of renewing “trade tools” (see ITTOIA 2005, s 68). The legislation is considered to refer only to small items such as hammers, chisels and so on, but by concession the relief has been extended to any items of plant and machinery.The allowance works on the basis that you cannot have a deduction for... - Claiming Travel Costs in Property Rental Businesses
A rented property portfolio may not be placed in the same street or even the same town as your main residence or place of work. Travel from one property to another, as the landlord dealing with problems as they arise, does cost. That cost is allowed as an expense against rental income received.The treatment of travel expenses is similar to that as incurred... - What is a `dwelling house’ and Why Does it Matter?
At first sight, it would seem that the answer to the question `What is a dwelling house?’ is pretty straightforward. Most people would have a clear idea of what they regard as a house and as a dwelling. The Oxford English dictionary defines a `dwelling house’ as a house used as a residence, not as an office etc. `Residence’ is defined as... - Use it or Lose it! Flat Conversion Allowance
There is a special relief that allows significant tax write-offs for the cost of getting disused flats over commercial premises back into letting condition. This article will cover the basics of what could, for many property owners, prove to be a potentially valuable tax break. But be warned... - Tax Insider: Tax Tips
- Tax Insider: Your Property Tax Questions Answered by Arthur Weller
Try Property Tax Insider Today!
Customer Success Stories
My accountant and I need absolutely accurate and the most up-to-date advice that we can possibly get. Time and time again Tax Insider has come up with the goods!
I wholeheartedly recommend the ‘Tax Insider’ to anyone who is interested in legitimately minimising their tax bill.
Dr Bennie Mallett, General Practitioner
I wholeheartedly recommend the ‘Tax Insider’ to anyone who is interested in legitimately minimising their tax bill.
Dr Bennie Mallett, General Practitioner
Property Tax Insider is aimed specifically at anybody who is involved in property.
Its sole purpose is to help you to legitimately avoid or minimise your property income tax, capital gains tax, inheritance tax etc.
This monthly magazine will particularly benefit the following:
Its sole purpose is to help you to legitimately avoid or minimise your property income tax, capital gains tax, inheritance tax etc.
This monthly magazine will particularly benefit the following:
- Landlords with properties in the UK
- Property investors who hold property overseas
- UK and international property developers
- Accountants or tax advisors who have property clients
- Financial advisors
- Three Homes Are Where the Heart Is! More Insights Into What Makes A ’Main Residence’(February 2012)
- Renewable Energy and Tax (Part 2) – Business Tax(January 2012)
- Solar Power for Property Owners (Part 1)(December 2011)
- Tenant Deposits: Traps & Tips(November 2011)
- Limited Companies for Landlords(November 2011)
- Claiming Tax Relief for Capital Expenditure - Part 3(November 2011)
- How to Use Trusts to Protect Property Assets(November 2011)
- Escape the Capital Gains Tax Trap!(November 2011)
- When Investments Go Bad! Claiming Tax Relief(October 2011)
- Using Trusts to Minimise Property Capital Gains Tax (CGT)(October 2011)
- Can I Receive Gross Rental Income from Property Agent?(September 2011)
- Can My Brother ‘Gift’ Me a Share of a Property in His Name?(September 2011)
- Can Our Property Business Hire My Self-Employed Partner?(August 2010)
- Can I Claim Mortgage Relief for the Period of Trying to Sell My Property?(July 2010)
- Can my brother sell me our joint property below market value?(December 2009)
- Does the day of arrival count towards the 70 day rule?(December 2009)
- Is it Possible to Transfer Our Property Into My Sole Name on The Basis That I Pay Him £10,000 Settlement?(November 2009)
- Can my son live rent-free in the property?(November 2009)
Can my brother sell me our joint property below market value?
Can my brother sell me our joint property below market value?
My brother and I bought a property jointly but the deeds are registered solely in his name. Neither of us have used the property as a main residence. The property was rented over the period and all rents were declared. The purchase price for this property was £50,000 and the current market value is £150,000. Can my brother now sell this property to me below the market value (e.g.£100,000) to reduce the CGT on the sale?
Arthur Weller Replies:
It is not clear to me whether you have always had beneficial ownership over half the property, since the date of acquisition, or not
i.e. did the contribution of half the purchase price make you an owner of half the beneficial ownership of the house,even though your brother was the legal owner, or was the contribution of half the purchase price by you simply a loan by you to your brother? An important factor in deciding this question is in whose name was the rental income declared to the Revenue. If it was declared only in your brother's name, this shows that your brother had beneficial ownership over the whole property (see Revenue Capital Gains Manual page CG70230.) If you have always had beneficial ownership over half the property, then the proposed sale from your brother to
you can only be for his half of the property, because you already own your half. Any sale between connected persons (and brothers are called connected persons) is treated for capital gains tax purposes, as a sale at present market value, regardless of the actual payment the buyer makes to the seller. So in your case, even if you pay your brother £100,000, and no more, the Revenue will treat your brother as though he received £150,000 (the current market value) from you, for capital gains tax purposes, and tax him
accordingly.
- Private Residence Relief and Working From Home(June 2010)
- Stamp Duty Land Tax Tip(May 2010)
- Reclaiming Your Class Four NIC(April 2010)
- Tax Return Help Sheet for Negligible Value Claims(March 2010)
- How to Qualify for Furnished Holiday Accommodation Relief(January 2010)
- HMRC(December 2009)
- Review Your Position In 2014(December 2009)
- You Can Create a Tax Loss By Knocking a Building Down(November 2009)
- Renovations and alterations(October 2008)
- Do you have two properties that could be your main residence?(May 2008)
Reasons to buy
- Very easy to read - written in plain english
- Written by UK leading and practising tax experts
- Guaranteed to minimise or avoid your tax liabilities
- Keeps you up-to-date with changes in tax legislation
- One month free trial (so you have nothing to lose)
