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Not every director of an owner-managed property company wants or needs a large salary from the company. 

For example, the company’s business might be going through difficult times; or the director might have sufficient income from other sources; or the company’s remuneration policy might be low salary and high dividends.

Mark McLaughlin looks at the national minimum wage in the context of directors of owner-managed companies.

With rising mortgage costs and household expenses, many homeowners consider taking in a lodger. From an income tax perspective, the arrangement is often straightforward. Where furnished accommodation is let within the taxpayer’s only or main residence, rent-a-room relief (ITTOIA 2005, Pt 7, Ch 1) can exempt up to £7,500 of rental income each tax year (this limit is halved if another person is also entitled to the income).

Nick Wright explains how taking in a lodger can be a tax-efficient way to generate income and may qualify for rent-a-room relief but warns that homeowners and advisers should be aware that certain arrangements, particularly those involving self-contained accommodation, can restrict principal private residence relief for capital gains tax purposes. 

A contractor in the construction industry has considerable regular ongoing fiscal obligations, perhaps more than in any other industry. Before looking at these responsibilities, it is perhaps worth considering what a contractor is for construction industry scheme (CIS) tax purposes.
The term ‘contractor’ includes any person carrying on a business which includes ‘construction operations’ (a mainstream contractor). A contractor is anybody or person who contracts for construction operations to be undertaken. A mainstream contractor is any business where construction is its main business or indeed forms a substantial part of its business.

Tim Palmer reviews construction industry scheme tax responsibilities and obligations of a contractor.

Business rates, like council tax, are paid to help fund local services. Business rates rather than council tax are paid on properties that are used commercially, which includes self-catering accommodation such as holiday lettings. Falling within business rates can be beneficial and where small business rate relief applies, many landlords letting out a holiday cottage do not pay anything.
However, letting self-catering accommodation on its own is not sufficient to bring the property within business rates. The rules that apply depend on where the property is located.

Sarah Bradford explains what tests landlords letting holiday accommodation need to pass in order to fall within business rates rather and council tax.

Property partnerships seem popular these days – typically, as a stepping-stone to greater things. Regular readers will know that I have long criticised HMRC’s published position on whether a property partnership exists, as distinct from simply co-owned property. My argument is that HMRC has drawn up its guidance to set an unreasonably high threshold to ‘make the grade’ as a partnership.

Lee Sharpe looks at whether a joint property letting activity amounts to a partnership, and why it is relevant to landlords.  

Most people do not expect to have to pay capital gains tax (CGT) when they sell their home. Private residence relief (also known as main residence relief or principal private residence relief) normally applies in full when the property has been the taxpayer’s only or main residence throughout the whole period for which they have owned it.  

Sarah Bradford outlines the concept of a ‘main’ residence for capital gains tax purposes. 

The government (HMRC) has become increasingly worried about the volume of small and medium-sized enterprise research and development (R&D) tax credit payments where a company claims to have undertaken eligible R&D activity (and it is important to keep in mind that only certain types of R&D may qualify – there are a lot of criteria).

Lee Sharpe looks at tax aspects of modernising property and the risk of disallowance as improvements that constitute capital expenditure, losing income tax relief in the property business. 

Whether to buy commercial or residential property depends on various factors, not least the more beneficial tax system for commercial lets and whether an individual or a company is purchasing the property. The government wishes to encourage commercial lets and therefore permits a more generous tax regime than residential lettings. 

Jennifer Adams considers some important tax benefits of investing in commercial property.