The decision to sell land or property will, in most cases, be made by the taxpayer. However, in the case of a compulsory purchase the decision is taken out of the taxpayer’s hands. Where land is compulsorily acquired by an authority (such as a local authority), the owner has a legal entitlement to compensation. How …
Compulsory acquisition of land – tax consequences Read More »
If you have income from land and property, you may be able to take advantage of the property allowance. The allowance can be used in various ways. Tax exemption If your income from property is less than £1,000, the property allowance allows you to receive that income free from tax. Where the income is covered …
Can you benefit from the £1,000 property allowance? Read More »
If you realise a chargeable gain on a UK residential property, you now have 60 days rather than 30 days in which to tell HMRC about the gain and make a payment on account of the tax that is due. A chargeable gain may arise on the sale of a residential property if that property …
60-day window to report residential property gains Read More »
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 …
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. …
Undertaking work on a rental property while empty – can you deduct the costs? Read More »
When it comes to let properties, furnished holiday lettings (FHL) are a special case and benefit from a number of concessions not available to standard lets. The concessions are only available if the property meets the tax tests to qualify it as a furnished holiday letting – the fact that it may be let out …
Capital allowances and furnished holiday lettings Read More »
Where a chargeable gain arises in respect of a UK residential property, since April 2020, the gain must be reported to HMRC and a payment made on account of the associated tax liability. The good news is that taxpayers now have longer to tell HMRC about the gain and to pay the tax. When might …
Reporting and paying tax on UK residential property gains Read More »
A landlord will normally take a deposit from a tenant when letting a property to cover the cost of any damage caused to the property by the tenant. A deposit of this nature may be referred to as a security deposit, a damage deposit or a rental deposit. The landlord may also ask for a …
Treating deposits from tenants correctly for tax purposes Read More »
The deadline for filing the 2020/21 self-assessment tax return online is 31 January 2021. If you received income from property, you may need to tell HMRC about it on your return. There are designated property income pages for providing details of your property income. Income from property of £1,000 or less The property income allowance, …
In a furnished let, wear and tear of domestic items is inevitable and there will come a time when the landlord will need to provide replacements. From a tax perspective, special rules apply to provide relief for the cost of replacement domestic items. The rules only apply to residential lets, not to furnished holiday lettings. …
