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Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- The Home Refurbishment And VAT Trap It can generally be treated as axiomatic that the cost of buying and doing up a house for yourself is nothing to do with tax and one in which HMRC should take no interest. But this is by no means an inviolable rule. Alan Pink looks at some situations where buying a home and reconstructing/refurbishing it is anything but neutral from a VAT point of view.
- Putting An Investment Property In Joint Names Before Sale The tax system affords some tax breaks to married couples and civil partners and it is possible, depending on personal circumstances, to use these to mitigate the tax bill arising on the sale of an investment property. Sarah Bradford looks at when it can be beneficial to transfer an interest in an investment property to a spouse or civil partner prior to sale.
- Trusts: Tax Traps To Avoid! The use of trusts is a fairly popular way of passing wealth downgenerations. Mark McLaughlin highlights a selection of potential tax pitfalls when creating UK trusts to hold investment property.
- Does Incorporation Stack Up For Landlords? It seems you cannot have a discussion involving landlords these days, without somebody mentioning incorporation. With the stricter interest tax relief rules becoming effective from 6th April, it's another timely discussion to be had. Lee Sharpe warns that landlords should not rush into incorporating their businesses without weighing up the ‘pros’ and ‘cons’.
- Last Minute Tax Planning Checklist For Landlords As the start of the 2018-19 tax year fast approaches on 6th April, a timely checklist has been provided by Lee Sharpe to make sure that landlords are not unnecessarily overpaying in taxes.
- Inheritance Tax: Don’t Look Back In Anger! Many taxpayers are aware of a ‘seven-year rule’ for inheritance tax (IHT) purposes. They assume this rule to mean that if (for example) a parent gifts an investment property to their adult offspring, the gift will escape IHT if the parent survives at least seven years after making the gift. Mark McLaughlin points out that lifetime gifts can have inheritance tax implications for a much longer period than many people assume.
- Property Transfers: Tax Tips & Traps You could write a book about the tax implications of transferring real property from one person to another; but not many people would have the time to read it. Instead, I am hoping that a very rapid resumé of some of the big issues might help avoid problems, and/or seize tax planning opportunities which might exist. Alan Pink looks at some of the myriad tax complications that can arise when transferring the ownership of property from one person to another.
- SDLT – Recent Changes And Unusual Cases Stamp duty land tax (SDLT) is payable where ownership of land and property changes hands in exchange for consideration. In most cases, ownership will change hands in return for money. Sarah Bradford takes a look at some recent changes to SDLT and the calculation of the SDLT bill in some more unusual cases where ownership changes hand.
- The Revenue Vs Capital Property Expenditure Conundrum As demand for rental properties remains strong, property investors will look at ways to adapt existing property for better rental returns. Typically, this will involve houses in multiple occupation (HMOs), or converting larger properties into more permanent apartment-type accommodation. Lee Sharpe uses case studies to explain the tax treatment of adapting property for different use.
- Holding UK Property Through An Offshore Trust: Is The Tide Coming In? Until very recently it was pretty much a ‘no-brainer’, if you or key members of your family were non-UK resident or non-UK domiciled, to hold a substantial portfolio of UK real property through the medium of an offshore trust, provided the values were great enough to justify the annual cost. Alan Pink highlights a tax issue that landlords often forget and points to some potential ways out of the pitfall.
- Conditionality: More Red 'Tax' Tape For Landlords? In December 2017, HMRC published a consultation document ‘Tackling the hidden economy: public sector licensing’. The document sets out proposals to tackle the hidden economy by introducing ’conditionality’ measures. Sarah Bradford looks at HMRC’s proposal to make compliance with certain tax obligations a condition for the holding of some licences, and what this might mean for landlords.
- Private Residence Relief: When ‘Quality Trumped Quantity’! Most individuals who dispose of their dwelling-house expect that any capital gain will be subject to private residence relief. Many of them are correct but, unfortunately, some are left disappointed. Mark McLaughlin highlights a recent case in which an individual’s quality of occupation of a property was sufficient to secure private residence relief, despite having occupied it for short periods.
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