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Most people are aware of the general principle for inheritance tax (IHT) purposes that if an individual gifts an asset (e.g., an investment property) to another individual, the gift escapes IHT if the transferor survives at least seven years thereafter (there is an exception if there is a ‘reservation of benefit’ in the gift, but those anti-avoidance rules are not considered here).

Mark McLaughlin looks at property disposals for inheritance tax purposes and implications of selling property at an undervalue.

Landlords can claim a range of expenses, but the rules are often misunderstood. This article explains what is allowable, highlights key differences between residential and commercial property, and outlines common pitfalls that can lead to incorrect or denied claims.

Nick Wright outlines key rules governing landlord expense claims, from the ‘wholly and exclusively’ test to the replacement of domestic items relief and the restricted finance cost deduction for individual landlords.

Couples commonly enjoy very different levels of income, sometimes to the extent that each spouse or civil partner is not fully using their own personal allowance and set of lower tax bands. At the extremes, this can result in a marked divergence in marginal tax rates of at least 45%. 

Debbie Reyland warns of pitfalls when reallocating income between spouses or civil partners for tax purposes.

Main residence relief (also known as private residence relief or principal private residence relief) provides relief from capital gains tax (CGT) where a property has been the owner's only or main residence. The relief extends to land that the person owns and occupies with their main residence as its garden or grounds.

Sarah Bradford considers the extent to which a home’s land and gardens qualify for main residence relief.

Property partnerships seem popular these days – typically, as a stepping-stone to greater things. Regular readers will know that I have long criticised HMRC’s published position on whether a property partnership exists, as distinct from simply co-owned property. My argument is that HMRC has drawn up its guidance to set an unreasonably high threshold to ‘make the grade’ as a partnership.

Lee Sharpe looks at whether a joint property letting activity amounts to a partnership, and why it is relevant to landlords.  

Most people do not expect to have to pay capital gains tax (CGT) when they sell their home. Private residence relief (also known as main residence relief or principal private residence relief) normally applies in full when the property has been the taxpayer’s only or main residence throughout the whole period for which they have owned it.  

Sarah Bradford outlines the concept of a ‘main’ residence for capital gains tax purposes. 

The government (HMRC) has become increasingly worried about the volume of small and medium-sized enterprise research and development (R&D) tax credit payments where a company claims to have undertaken eligible R&D activity (and it is important to keep in mind that only certain types of R&D may qualify – there are a lot of criteria).

Lee Sharpe looks at tax aspects of modernising property and the risk of disallowance as improvements that constitute capital expenditure, losing income tax relief in the property business. 

Whether to buy commercial or residential property depends on various factors, not least the more beneficial tax system for commercial lets and whether an individual or a company is purchasing the property. The government wishes to encourage commercial lets and therefore permits a more generous tax regime than residential lettings. 

Jennifer Adams considers some important tax benefits of investing in commercial property.