Property Tax Insider Monthly Newsletter

A very popular property investment strategy is to convert a large property into a house in multiple occupation (HMO). In fact it is fair to say that many landlords have this as their sole investment strategy given the potential financial rewards.

Lee Sharpe looks at some of the tax implications of converting a large property into a house in multiple occupation.

When setting up a property company, one of the choices that needs to be made is the form that the business should take. While there are a number of different options that can be considered, the decision is often whether to incorporate or not.

Sarah Bradford takes a look at the differing tax consequences of operating a property business as an unincorporated business and operating as a limited company.

It is difficult to think of a tax avoidance scheme more strongly disliked by HM Revenue and Customs (HMRC) than the ‘home loan’ (sometimes referred to as the ‘IOU’) scheme for inheritance tax (IHT) purposes.

Mark McLaughlin highlights a case on an inheritance tax scheme involving the family home.

Non-UK domiciled expats from other countries are often invited to come to the UK to bring unique skills and expertise, novel ideas and investment.

When a non-UK domiciled individual arrives in the UK, they will need somewhere to live, but having a home or accommodation in the UK means they will need to consider their exposure to UK tax. Meg Saksida considers the tax issues to consider in the ownership of a UK family home.

According to resolutionfoundation.org, one in eight private sector tenants has failed to cover their housing costs during the Covid-19 crisis. This means that 13% of private landlords are facing the same expenses as every other year but without the income to cover them, meaning they are more than likely finding themselves in a loss-making position. 

Meg Saksida outlines ways for individual landlords to offset rental losses for tax purposes.

The previous case study focused on the kind of expenses incurred when a landlord or landlady takes on a new property and prepares it for letting out. 

In his fourth article in the series, Lee Sharpe looks at repair work undertaken in a void period and how to deal with insurance claims.

Inheritance tax (IHT) is only payable where the value of the chargeable estate exceeds the available nil-rate bands.

Sarah Bradford considers the impact that the Chancellor’s announcement that the IHT nil-rate band and residence nil-rate are to be frozen until April 2026 may have on those looking to pass on their family home.

Land and buildings (e.g. the family home) are often held in joint names, such as by spouses (or civil partners), or parent and offspring. When it comes to valuing an interest in a jointly-owned property for inheritance tax (IHT) purposes (e.g. on death), it is necessary to consider the valuation methodology.

Mark McLaughlin looks at discounts from the market value of jointly-owned properties for inheritance tax purposes.

Relief on the disposal of a private residence (or ‘principal private residence (PPR) relief’, as it is commonly known) is sufficient to shelter gains on the disposal of an individual’s only or main residence from capital gains tax in most instances, where the qualifying conditions are satisfied

Mark McLaughlin points out that principal private residence relief may be more generous than some people think.

Many landlords who get involved in buy-to-let will typically start with 'hands off' purchases where the proeprties purchased are ready for let. But many a landlord, as they start to grow their portfolio will start on the property development journey.

In this article, Lee Sharpe looks at what happens when a novice landlord takes on a typical second-hand property.

Capital gains tax (CGT) is a big threat to the financial health of a property investment business. In overview, CGT is a tax which bites when certain types of assets are disposed of at a value higher than they were acquired for. The most common assets that are subject to the tax are property, shares in companies, and assets used for the purposes of a business. 

Alan Pink looks at a few ‘real life’ solutions to the problem of tax and property sales.

Under English property law, there are two ways in which property can be owned jointly; as joint tenants or tenants-in-common. The way in which jointly-held property is owned will dictate what happens when one of the co-owners dies. There are also tax implications to consider.

Sarah Bradford looks at different ways in which property can be owned jointly and the associated tax implications.