Property Tax Insider Monthly Newsletter

Principal private residence (PPR) relief for capital gains tax purposes is available on most disposals by individuals of their dwelling-house. The assumption is normally that any capital gain will be subject to PPR relief. 

Mark McLaughlin highlights a case in which claims for capital gains tax principal private residence relief on the disposal of three properties in consecutive tax years all failed. 

Most people would prefer to spend less time dealing with administration, and landlords are no exception. When it comes to working out what expenses a landlord can deduct in calculating the profits of their property rental business, there are ways to save work. 

Sarah Bradford explains how using simplified expenses for vehicle costs can save work.

Arguably, landlords are being expected to shoulder an unfair burden in the context of the current government action against Coronavirus. 

Alan Pink considers the scope for buy-to-let landlords to reduce their taxable profits in the current general financial difficulties.

Paying tax on income from rented residential and commercial property is a necessary part of running a property business. However, a new landlord could be forgiven for overlooking this in the hustle and bustle of purchasing the property, making any renovations/repairs essential for letting, negotiating agents fees, finding tenants, arranging insurance and so many other (e.g. fire and health and safety) obligations to deal with. 

Meg Saksida explains that if landlords have undisclosed rental income, chances are it will be discovered. 

It is not uncommon for the owner of an investment property (e.g. a parent) to wish to transfer rental income (e.g. to adult offspring) but retain ownership of the property.

Mark McLaughlin highlights an income tax anti-avoidance provision that merits careful attention. 

The Covid-19 pandemic has put a massive dampener on foreign holidays. As a result, the British ‘staycation’ holiday market, helped by the good weather, flourished this year. 

Sarah Bradford looks at some important tax implications when considering buying a holiday let.

Generally, it’s true to say that the tax legislation seems to want to make it easy for spouses (and civil partners) to transfer assets (including properties) to each other. 

Alan Pink considers situations where inter-spouse (or civil partner) transfers of assets may be regarded as ‘avoidance’, and HMRC’s potential reaction.

The property allowance was announced in the Autumn statement 2016 with the policy objective to reduce tax complexity for small landlords and the simplification of the taxation of small property receipts. 

Meg Saksida outlines the property allowance and points out when it is a good idea.

A parent with sufficient means may sometimes wish to transfer an income producing asset. For example, a mother may wish to transfer investment property into a discretionary trust for her daughter (e.g. to help cover university costs or supplement income when buying her own home and/or starting a family). 

Mark McLaughlin highlights a selection of potential tax pitfalls when parents transfer investment property into a discretionary trust for their adult children. 

To help the country recover from the impact of the Covid-19 pandemic, the Chancellor announced a temporary increase in the stamp duty land tax (SDLT) threshold in his summer statement. Changes were also announced by the devolved governments to land and buildings transaction tax (LBTT) in Scotland and land transaction tax (LTT) in Wales.

Sarah Bradford considers whether landlords should look to take advantage of the temporary reduction in stamp duty land tax, land and buildings transaction tax and land transaction tax by expanding their property portfolio before 1 April 2021.

The UK notoriously has one of the most complicated tax systems in the world, and this certainly isn’t helped by the way HMRC administers it on some occasions.  

Alan Pink looks at the (still) vexed question of relief for interest on buy-to-let loans following refinancing.

The main residence, although exempt for capital gains tax, is not exempt for inheritance tax (IHT) purposes. Usually, it will be taxed at 40% of the probate value at the date of death. 

Meg Saksida considers various ways property can be protected from IHT in the death estate.