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- Property expenses: Don’t ask HMRC? Taxpayers such as buy-to-let landlords often seek advice from HM Revenue and Customs (HMRC).
Mark McLaughlin highlights a case where the taxpayer was accused of making a careless error despite seeking HMRC’s advice.
- Tax on property gains: Some planning ideas It’s a longstanding, and in my view justified, complaint on the part of property investors that they are taxed on inflation. In fact, since the abolition of capital gains tax (CGT) indexation allowance a few years back, the whole of CGT has been a tax on inflation, as well as a tax on ‘real’ gains; it’s just that this has a much more marked an effect where you’re talking about property, which historically has had a rate of inflation far in excess of anything that you will find in the retail prices index.
Alan Pink picks out some lesser-known possibilities for reducing capital gains tax on property.
- Using HMRC’s property rental toolkit to avoid common errors Mistakes in completing self-assessment returns can prove costly. There is the risk that more tax will be paid than is necessary. If tax is understated and HMRC judges that reasonable care has not been taken, there is also the possibility of penalties. However, in seeking to avoid common errors there is help at hand in the form of HMRC’s toolkits.
Sarah Bradford explores how HMRC’s property rental toolkit can be used to avoid common errors when completing the property income pages of the self-assessment return.
- Helping children onto the property ladder We shall be looking at improving children’s access to capital from the perspective of parents or grandparents who have a property portfolio and therefore capital wealth, but are ‘locked’ into bricks and mortar.
Lee Sharpe has some tax-efficient tips for helping children move into a property.
- 'Pros' and 'cons' of incorporating a property letting business There are a number of reasons for running a property letting business through a limited company. Perhaps the single biggest motivator for running a BTL business through a company is the escalating restriction of tax relief for mortgages and other finance costs for residential property profits subject to income tax. However, there are many more important considerations to be made.
Lee Sharpe looks at the 'pros' and ‘cons’ of incorporating a property letting business.
- HMRC being unfair? What next?! Taxpayers sometimes have grievances about HM Revenue and Customs (HMRC), such as mistakes or unreasonable delays. What can be done?
Mark McLaughlin looks at how HMRC’s actions can be challenged if they are considered unfair.
- A tax that’s (H)ATED! The annual tax on enveloped dwellings (ATED) is, as the name suggests, an annual tax on `dwellings’ held within an ‘envelope’, usually a company. Most residential properties are owned by individuals. However, where such a property is held by a company or other collective investment vehicle, the property is said to be ‘enveloped’ – ownership of the property sits within a corporate ‘wrapper’ or ‘envelope’.
Sarah Bradford explains when the annual tax on enveloped dwellings applies and how to submit returns and pay the tax.
- Property expenses: The importance of timing Timing is very important in a number of situations. When it comes to expenditures, the timing of when they are incured can be the difference between a significant tax liablity, a reduced or even zero tax bill.
Alan Pink looks at three situations where property tax can be reduced by careful consideration of the timing of expenses.
- Selling property: The CGT challenge If you look an inch below the surface of the thinking behind capital gains tax (CGT), what seems at first a simple and even reasonable tax becomes less so.
Alan Pink looks at some possible ways of reducing the capital gains tax charge on selling property.
- Property development through a company: ‘Pros’ and ‘cons’ There are many good reasons for running a trading property development business through a limited company. However, a limited company is not always appropriate.
Lee Sharpe looks at the advantages and disadvantages of incorporating a property development business.
- It’s a trust – But not as we know it! Some individuals might assume that the creation of a trust necessarily involves a written document (commonly a ‘trust deed’ in England and Wales), which appoints the trustees, states the terms of the trust, and identifies the beneficiaries and the trust property that will be subject to the trust.
Mark McLaughlin looks at a case involving a trust where none of the normal formalities were undertaken, which almost resulted in a large tax bill.
- Jointly-owned property and rental income: Whose is it? Property that is let out is often owned jointly. The nature of the relationship between the joint owners will generally depend on how the rental income is taxed.
Sarah Bradford explains how rental income is taxed where property is owned jointly.
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