Property Tax Insider Monthly Newsletter

The family property holding company has always been a popular business structure, and for various reasons (including the ‘Section 24’ interest disallowance) seems likely to become ever more popular – whether deservedly or not.

Unlike the situation where property is simply held direct by individuals, property investment companies can give rise to much head scratching when it comes to a particular need to realise funds from out of that company.

Alan Pink looks at tax problems with making partial realisations of value from family property companies, and how to mitigate those problems.

The family investment company (FIC) is a possible means of passing family wealth down to adult children and remoter generations. Furthermore, an FIC can be a tax-efficient ‘wrapper’ for individuals to manage their wealth.

Mark McLaughlin looks at family investment companies and a possible challenge by HMRC on the effectiveness of such structures for inheritance tax purposes.

This article considers the main tax issues that shareholder/directors should consider if they no longer want to run their property business – or at least, not in a company..

Lee Sharpe looks at the tax issues to consider when a property investment company has come to the end of its life.

Most people assume that if they make a gain on the sale of their main residence, there will be no capital gains tax to pay. However, that is not a given.

Sarah Bradford looks at capital gains tax private residence relief and the extent to which it applies to gardens and grounds.

The inheritance tax (IHT) ‘gifts with reservation’ (GWR) provisions are anti-avoidance rules. They are basically designed to prevent ‘cake and eat it’ situations (i.e. giving away an asset in the hope of surviving at least seven years in order for the gift to become exempt from IHT, but continuing to use or enjoy the asset during all or part of that period).

Mark McLaughlin looks at some exceptions to the inheritance tax ‘gifts with reservation’ anti-avoidance rules.

Landlords appear to be among the forgotten when it comes to financial help to deal with the effects of the Covid-19 outbreak. Sarah Bradford considers whether there is any help available for landlords affected by the Covid-19 pandemic.

Landlords have had a rough ride in recent years. For example, changes in mortgage relief, stamp duty land tax (SDLT), lettings relief and in the timing for payments for capital gains tax (CGT) purposes on residential properties have made being a landlord a lot less lucrative than it once was. Meg Saksida covers the issues that need to be considered when ceasing to let out rental properties.

I am no fan of the cash basis. Generally speaking, whenever HMRC or the Treasury tout something as a simplification. Lee Sharpe admits (grudgingly!) that the cash basis may have a role to play for landlords during the Covid-19 pandemic. But reverting back to generally accepted accounting practice once it has passed may also be very useful.

Is it a capital or an income expense? This is a question that is commonly asked when calculating a tax computation for a let property.

Meg Saksida reviews the classification and clears up some common confusion.

Where a landlord lets a property furnished, domestic items will be provided for use by the tenants. Special rules apply to determine both the timing and extent to which tax relief is available for the costs incurred in relation to the provision of domestic goods.

Sarah Bradford explains how landlords can obtain tax relief for replacement domestic items.  

Some (predominantly online) businesses have prospered from the coronavirus pandemic while millions of people have been encouraged to stay at home, but most businesses have suffered. 

Lee Sharpe looks at the implications for landlords whose tenants are struggling to pay rent in the Coronavirus era.
 

The expression ‘putting someone on the property deeds’ is commonly used to describe changing the legal ownership of a property, such as an individual’s home.

Mark McLaughlin looks at inheritance tax issues of ‘putting someone on the deeds’ of an individual’s home.