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 »
The Annual Tax on Enveloped Dwellings (ATED) is a tax on high-value residential properties that are held within ‘an envelope’, such as company or a partnership with at least one corporate partner. The charge does not apply to properties held by individuals. The charge may potentially apply where a property in the UK which is …
High value residential property let by a company – does the ATED apply? 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 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 »
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, …
Making Tax Digital (MTD) is a government programme to move to a digital tax world. HMRC’s stated ambition is to become one of the most digitally advanced tax administrations in the world. MTD involves fundamental changes in the way in which taxpayers keep records and report information to HMRC. MTD launched with MTD for VAT, …
Get ready for the next steps of Making Tax Digital Read More »
If you sell a property that has not been your main residence throughout the period that you have owned it, you may need to pay capital gains tax if a gain arises on the disposal of the property. This may be the case if you have an investment property, such as a buy-to-let or holiday …
Working out the capital gain on the sale of an investment property Read More »
No one likes the idea of the taxman taking a chunk of their estate when they die, particularly if it will be necessary to sell a much-loved property to pay the inheritance (IHT) bill. The introduction of the residence nil rate band (RNRB -set at £175,000) means that a couple can now leave combined estates …
Multiple dwellings relief’ (MDR) allows a rate to be charged at the percentage payable on the ‘average value’ price (referred to as the ‘Average Value SDLT’ (AVSDLT)) should more than one property be purchased at one time, rather than on the total consideration. MDR is only available for residential transactions. The purpose of this relief …
