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Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- Maximise Tax Relief When ‘Doing Up’ Your Buy-To-Let Buying a property to renovate and then let out, can be an attractive proposition, particularly where the buyer has the skills to undertake a lot of the work him or herself. Sarah Bradford explores the tax reliefs on offer when renovating a buy-to-let property.
- Landlords: Beware The Deferred Capital Gains Tax Pitfall Capital gains tax (CGT) is arguably in many cases nothing more than a tax on inflation. Landlords tend to get so used to the idea of their property portfolios effortlessly moving upwards that they forget there is likely to be a price to pay in the end. Alan Pink highlights a tax issue that landlords often forget and points to some potential ways out of the pitfall.
- The Big Misconception About Property Repairs Landlords know that the easiest time to update a property is before it is first let. But, however necessary the work, will HMRC say it is capital expenditure that cannot be claimed against rental income? Lee Sharpe looks at the little known rules for claiming tax relief on expenses incurred before you first let a property and shows how you can make big income tax savings.
- Inter-Spouse Transfers And The Exception That Proves The Rule It’s pretty generally understood that husband and wife (and civil partners) are treated in most ways as a single unit for the purpose of taxing asset transfers of any kind. Alan Pink considers a stamp duty land tax ‘trap’ when transferring properties between spouses and other family members, and suggests evasive action.
- £8,500 Rental Income – Tax-Free! As far as property taxes are concerned, the rent-a-room scheme and the new property allowance provide the opportunity for tax-free property income. Sarah Bradford explores how it is possible to enjoy a rental income of £8,500 tax-free and to benefit from both rent-a-room relief and the new property allowance.
- Gifting The Family Home – An IHT Trap It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. Mark McLaughlin looks at a potential inheritance tax anti-avoidance problem with making an outright gift of the family home.
- Loan Interest Relief On Re-Mortgaging: HMRC Changes Guidance… A number of previous articles in Property Tax Insider have highlighted HMRC’s useful guidance in its Business Income manual at BIM45700, which looks at claiming tax relief when remortgaging or releasing equity from properties. Lee Sharpe looks at HMRC’s recent attempt to deny tax relief for loan interest – although it denies changing its position on re-mortgaging property.
- Holiday Lettings - At Your Service? Business property relief (BPR) is a valuable inheritance tax (IHT) relief, which is available to business owners if certain conditions are satisfied. Mark McLaughlin looks at furnished holiday lettings in the context of inheritance tax business property relief.
- Main Residence Relief: A House With Land
Main residence relief prevents a capital gains tax liability arising on the sale of one’s home. However, there are important factors that need to be considered when a house is sold with land. Sarah Bradford examines the application of main residence relief to a house with land.
- Property Partnerships And Form 17 Explained
Many readers will be familiar with HMRC’s Form 17 (‘Declaration of beneficial interests in joint property and income’) for use by spouses and civil partners, but it is surprising how even some agents can get the details wrong. Lee Sharpe looks at HMRC’s Form 17 declaration of beneficial interest in joint property and how it is used.
- Landlord Tax Case: HMRC Disallows Expense Claim
HM Revenue and Customs (HMRC) could seek to disallow such expenses if there is insufficient evidence that the expenditure has been incurred, and may impose penalties for record keeping failures. Mark McLaughlin highlights a tax case in which HMRC estimated a taxpayer’s property rental business expenses in the absence of sufficient records.
- Reducing CGT On Residential Property Disposals
When George Osborne was Chancellor, one of his main anxieties seemed to be the booming residential property market. He took a number of fairly draconian steps to cool this market down, which indeed seem to have been successful. Alan Pink considers ways of reducing the swingeing 28% tax rate on gains on residential properties.
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