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Land and Property tax advice 

Individuals who receive rent or income from land in the UK are required to report this income to HMRC and prepare tax returns. This will be relevant for both resident and non-resident individuals (if the land is in the UK in relation to non-residents). 
 
It is important to calculate the tax on this income correctly and ensure that the correct expenses are deducted against rental income. Some expenses cannot be deducted if they relate to capital expenditure (for example, a new kitchen) and there are many different expenses that can be deducted, such as repairs, ground rent, letting agent fees, mortgage interest, gas and safety checks, insurance, accountant’s fees and advertising for tenants. 
 
If you have a furnished holiday let there are more favourable rules that relate to this activity. For these properties, you can claim a wear and tear allowance and full mortgage interest relief is available. When the property is sold, if certain conditions are met, there may be a lower rate of capital gains tax payable in comparison to a standard let. 
 
We provide assistance for many landlords, property investors, property developers and those who are seeking to hold property as part of a longer term retirement. Many of our clients consider the longer term structuring of property investment portfolios, including incorporated entities and LLPs. There are many tax planning articles and sources of guidance below but please do contact one of our tax team for further assistance. 
 

To view the latest updates relating to land and property advice please click on the article below: 

  • CAPITAL GAINS TAX – PAYMENT WITHIN 30 DAYS?
    If you are an individual who is currently within self-assessment you will have previously reported any capital gains due on a property sale on your personal tax return which you prepare on an annual basis. Since 6th April 2020, individuals have had to report gains on the sale of property within 30 days. This is not reported via the usual self-assessment method.
  • Main residence Relief
    A valuable capital gains tax exemption known as Principle Private Residence Relief or “PPR” applies when a taxpayer sells their main home. There are conditions attached to this relief.
  • Inheritance Tax and Land
    Inheritance Tax and Land : what qualifies for Agricultural Property Relief “APR” and what is Business Property Relief “BPR”
  • Tax Returns during Estate Administration
    If an individual previously submitted tax returns to HMRC during their lifetime, in death they will need to Report taxable income in the tax year of death and prepare a tax return to report income and gains realised from the date of death until the end of the tax year
  • Capital Gains Tax – new payment deadline for residential sales
    From April 2020 the deadline for payment of Capital Gains Tax “CGT” due from the sale of residential property will be shortened to 30 days after the date of sale.
  • Property Trading Companies and Business Property Relief Case Law
    This article examines the challenges HMRC have raised for land and property based businesses via the courts in recent years and the ‘trading’ requirements that must be met.
  • Property Incorporation vs Ownership
    Recent changes in government policy have had a significant impact on individual’s owning property. Changes restricting the deduction of finance costs to a basic rate of tax and the introduction of the 3% SDLT surcharge have led many of our clients to consider whether a corporate structure is a more effective way to own a property portfolio.
  • Inheritance Tax and the Family Home
    The family home will be liable for Inheritance Tax (‘IHT’) if the value of the home exceeds the available nil rate band upon the relevant individual’s death (the surviving spouse or sole owner).
 
 
 
 
 
 
 
 
 
 
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