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The ‘residence nil-rate band’ (RNRB) can shelter all or part of an individual’s residential property value from inheritance tax (IHT), if certain conditions are satisfied. 

The maximum RNRB per individual is £175,000 (for 2025/26). If the family home was jointly owned by a married couple or civil partners, up to £350,000 per couple is available. When combined with the standard IHT nil-rate band of £325,000 each, the combined estate values of the couple for IHT purposes can therefore be reduced by up to £1m.

Mark McLaughlin looks at when a property is ‘closely inherited’ for inheritance tax residence nil-rate band purposes.

If a taxpayer has underdeclared their property income, whether unknowingly or deliberately, the ‘Let property campaign’ (LPC) allows them to make a full disclosure to HMRC to rectify their errors. 

If a taxpayer has underdeclared their property income, whether unknowingly or deliberately, the ‘Let property campaign’ (LPC) allows them to make a full disclosure to HMRC to rectify their errors. 

Enquiries can drag on for many months, and even for years. Advisers can find this frustrating – particularly when an enquiry outlasts more than one caseworker and they have to remind the fresh HMRC officer (referred to as an ‘inspector’ in this article) that an issue was already addressed, back in 2015. 

Lee Sharpe looks at the option of asking the tax tribunal to force HMRC to close an enquiry down.

The special tax regime for furnished holiday lettings (FHLs) came to an end on 5 April 2025. After that date, FHLs are treated in the same way as other residential lets for tax purposes. This change removed many of the advantages previously enjoyed by landlords letting furnished holiday accommodation. 

Sarah Bradford looks at how the end of the tax regime for furnished holiday lettings can impact landlords who are married or in a civil partnership.

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.