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Rent-a-room receipts can include more than rent for the use of furnished accommodation in a residence. It can also include receipts in respect of goods or services (i.e., meals, cleaning and laundry) supplied in connection with that use. 

Reshma Johar explores a useful relief which aims to encourage individuals to let out rooms in their only or main residence in the UK. 

The 2% SDLT supplement: Who and where?

In Budget 2018, the government announced that it was planning a consultation on the introduction of a new stamp duty land tax (SDLT) supplement for non-resident individuals and companies purchasing residential property. 

Meg Saksida explains the traps to bear in mind in connection with the 2% stamp duty land tax supplement and considers the definition of ‘non-resident’.

VAT and working from home

If a business is run from home or has an office at home, it is entitled to claim back the VAT on any legitimate business expenses. 

Andrew Needham looks at VAT consequences of working from home.

What is the likely impact of changing the tax year and basis periods?

In Budget 2020, as part of the transition to a digital tax system, the UK government set out its proposals on the further modernisation of the UK tax system. A report by the Office of Tax Simplification proposed a change of tax year end and covered two specific dates, 31 March and 31 December.

Iain Rankin examines the rationale behind the proposed change of tax year end date, and the forthcoming abolition of the basis period rules for unincorporated businesses.

Garden, grounds or neither?

The disparity between residential and non-residential (including mixed-use) land for stamp duty land tax (SDLT) rates is such that the latter makes for a far more attractive purchase. 

Chris Thorpe looks at whether some land bought with a house will necessarily be subject to the residential rates of stamp duty land tax.

Charging the company rent for commercial premises

Many directors own business premises either personally or via a self-invested personal pension (SIPP), charging the company rent rather than the company owning the premises itself. 

Jennifer Adams considers the tax implications of a director charging the company rent for the use of commercial property.

Q&As with Arthur Weller

Tax-efficient goodies for employees

Christmas brings the exciting prospect of gifts and parties. Many employers wish to ‘treat’ staff at this time of year, and if they can do it in a tax-efficient way, so much the better!

Mark McLaughlin highlights some potentially tax-efficient goodies for employees this Christmas. 

Changes to the rate of dividend tax from April 2022 explained

From 6 April 2023, a new Health and Social Care Levy is being introduced to provide ring-fenced funding for health and adult social care. The Government are also ensuring those who take dividends rather than a salary will contribute towards the costs of health and social care by increasing the rates of dividend tax.

Sarah Bradford outlines changes to the rate of dividend tax applying from April 2022, and suggests how the rises might be beaten by planning ahead.

Mishandling of the IR35 Regime

Many company sales involve part of the consideration being satisfied in the form of loan notes issued by the purchaser. The sale of owner-managed companies often involves part of the sale consideration being satisfied in the form of loan notes issued by the purchaser. In effect, the owner manager is agreeing to finance the deferral of part of their sale proceeds.

Peter Rayney looks at some of the practical tax issues concerning loan notes.

Getting to grips with the stamp duty changes (Part 1)

Stamp duty often tends to be overlooked with a simple shrug of the shoulders – ‘It’s only ½% on share purchases, isn’t it?’.  

In the first of a two-part article, Peter Rayney looks at some of the recent changes to stamp duty affecting owner-managed companies.

Q&As with Arthur Weller

Property repairs – how and when relief is available

In its Property Income manual (at PIM2020), HMRC defines a ‘repair’ as ‘the restoration of an asset by replacing subsidiary parts of the whole asset’. However, in ascertaining whether works undertaken on a property would be classed as a repair, it is important to note that any works resulting in a significant improvement of the property beyond its original condition would not qualify as a repair.

Sarah Bradford using case studies, explores how and when tax relief is available for property repairs.

Retaining main residence relief in a rising property market

Property prices are still rising in the UK. Brexit and Covid caused small blips in the market, but the stamp duty land tax holiday coupled with an increased need to work from home led to a 13% rise from mid-2020 to 2021. Taxpayers wishing to sell their homes in these inflationary times may therefore be facing a large gain. 

Meg Saksida considers what might be done to retain main residence relief.

When trusts give rise to unintended tax consequences…

Trusts can be created for many reasons, including tax planning. Whatever the reason, the tax implications of creating and running a trust need to be considered in advance. 

Mark McLaughlin looks at court applications to rectify trust deeds where trusts give rise to unintended tax consequences.

Tax case - disposal of a dwelling within the grounds of a larger main residence

Given how many tax cases have been heard over the years regarding the relief from capital gains tax (CGT) in respect of one’s only or main residence, it may surprise some readers to find that the provisions involved cover only three principal sections and a handful of pages of the relevant legislation.

Lee Sharpe looks at a recent Scottish capital gains tax (CGT) case involving the disposal of a dwelling within the grounds of a larger main residence.

Q&As with Arthur Weller