Kelly Smith

Giving away the family home – beware the gifts with reservation rules

The family home is likely to be your most valuable asset. Consequently, when looking to reduce inheritance tax, it may seem sensible to try and give your home away before your die. From a capital gains tax perspective, as long as the property has been your only or main residence throughout the time that you …

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The tax implications of holiday lets

The taxation of profit from furnished holiday lets (FHL) could be termed a ‘hybrid’ of taxes. The operation of a FHL is deemed to be a business and not a property income investment, and as such the usual business income and expenditure accounts are prepared. Benefits of treatment as a holiday let This treatment creates …

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Identifying a UK property rental business

Where a landlord runs an unincorporated property business, the profits from that business are charged to income tax. Where the business is carried on through a company, the charge is to corporation tax. There are four different types of property business: • a UK property rental business; • a UK furnished holiday lettings business; • …

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Undertaking work on a rental property while empty – can you deduct the costs?

Where a property is let out, there are likely to be periods when the property is empty, either between tenants or, in the case of a holiday let, between guests. Properties need to be maintained, and it is easier to undertake any work that may need doing, such as redecoration, while the property is empty. …

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