Try Property Tax Insider today and receive:
- 3 FREE Issues - The current issue and the previous two issues (12 tax saving articles)
- Delivered to your doorstep
Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- Transferring Property Rental Income: Avoid Unexpected Tax Charges
Some individuals who own investments (e.g.buy-to-let properties) may wish to transfer rental income to someone else whilst retaining ownership of the property.
It is a very common and handy tax planning strategy.
Lee Sharpe highlights the less well-known anti-avoidance provisions and gives some useful planning points for those using this popular tax saving strategy.
- Making The Most Of Main Residence Relief
Most people know that you don’t pay capital gains tax (CGT) in the UK when you sell your own home. But very few know how wide ranging, flexible, and even generous the relief can be in the case of properties which have not been, or have not always been, your main residence.
Alan Pink looks at some of the well-known and not so well-known ways of reducing capital gains tax on the sale of a property by using main residence relief...
- POAT: Out Of The Frying Pan Into The Fire? Part 1
Individuals (and advisers) will sometimes need to consider whether ‘pre-owned assets tax’ (POAT) applies, such as (but not necessarily) if inheritance tax (IHT) planning is undertaken.
Mark McLaughlin provides an overview of the pre-owned assets tax charge as it applies to land and properties...
- Taxing Times? Investing In A Student House
Student accommodation is expensive, and your student offspring may pay between £150 and £225 a week, depending on where they study. Renting is, for the tenant anyway, dead money. However, a parent with the funds to invest may wish to consider purchasing a property for their student son or daughter to live in while at university, ideally with additional rooms that can be let to (well-chosen) friends.
Sarah Bradford examines whether investing in a property for a student son or daughter to live in whilst at university is worthy of consideration...
- Record Keeping For Landlords - Tips and Traps
Landlords need to keep records of income and expenditure to enable them to prepare an accurate tax return. Records will generally need to be preserved for five years following the 31 January self-assessment deadline, or six years from the end of the relevant accounting period for corporation tax.
Lindsey Wicks takes a deeper look at the real record keeping requirements for landlords...
- Landlord Options Available To Fight The ‘Osborne Tax’
In the January 2017 issue of Property Tax Insider, Alan Pink considered the widespread suggestion of fighting the ‘Osborne Tax’ (that is, the phased restriction of interest relief on buy-to-let property portfolios) by transferring those portfolios to a limited company. A solution discussed was the 'Beneficial Interest Company Trust'.
Alan now looks further at the solution and highlights some other alternative options available...
- Private Residence Relief: When HMRC’s ‘Off-Plan’ Arguments Were Off Target!
When an individual buys a property to occupy as his or her primary residence, there might be a time gap between acquiring the property and moving in.
Mark McLaughlin looks at a private residence relief case involving an individual’s delay moving into a dwelling whilst it was being built...
- Making Tax Digital: Deadlines Postponed
Many readers will know that the original Finance Act 2017 was supposed to be the longest ever, running to around 800 pages in the original Finance Bill. Many readers will also know that the Finance Bill was cut down to ‘almost nothing’, (a mere 150 pages), thanks to the general election. Making tax digital (MTD) was amongst the legislation to be cut.
Lee Sharpe considers the recent announcement by the government that making tax digital is to be postponed...
- Beware The ‘Settlements’ Trap When Transferring Rental Income A lot of other countries tax the income of married couples in a different, and arguably much more sensible, manner. Rather than taking each of the spouses as a separate individual, they charge tax based on the overall household income. In the UK it is quite common for rental income to be transferred to a 'lower rate' spouse/partner.
Alan Pink considers an anti-avoidance barrier to sharing income between spouses for tax purposes...
- An Inheritance Tax-Free Rental Property Business? Many individuals would like to have a rental property business, but may be concerned (among other things) about the possible eventual inheritance tax (IHT) liability on the value of the property portfolio. However, a valuable IHT relief may be available to alleviate the problem in certain circumstances.
- Mark McLaughlin considers the inheritance tax treatment of a rental property business within a trading company.
- The Residence Nil-Rate Band Explained The new inheritance tax residence nil-rate band applies for deaths on or after 6 April 2017. People have long been calling for an inheritance tax (IHT) exemption for the family home.
- We’re not there yet, but the new residence nil-rate band (RNRB) takes us one step closer for smaller estates. Lindsey Wicks takes a look at the new rules.
- Principal Private Residence Relief: Quality Wins Over Quantity! One of the most common questions asked in relation to principal private residence relief (PPR relief) is: ‘how long do I have to live in the property before I can claim the relief? Lee Sharpe considers how case law has developed in contentious areas of only or main residence relief for capital gains tax purposes.
- No minimum tie-ins
- You can cancel whenever you want