You may be liable to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home, for example: buy-to-let properties business premises land inherited property The rules are different if you: sell your home live abroad are a company registered abroad When you don’t pay Generally, you.. read more →

With the 31 January tax return deadline just around the corner, HMRC has revealed the ‘Top 10 oddest excuses’ for sending in a late return. The following bizarre, exotic and flimsy excuses have all been used by tardy taxpayers: My pet goldfish died (self-employed builder) I had a run-in with a cow (Midlands farmer) After.. read more →

A look, with working examples, at pre-letting expenses and the issue of whether repairs are a capital or revenue expense. Profits from UK land or property are treated, for tax purposes, as arising from a business. The broad scheme is that rental business profits are computed using the same principles as for trades (ITTOIA 2005,.. read more →

Some of the key announcements in the Spring 2016 Budget : Residential Landlords A number of changes happening: First, the 10% wear and tear allowance on furnished properties goes from April 2016, to be replaced with a deduction for actual repairs and replacement costs incurred. Secondly, starting from 17/18 and tapering over four years, relief.. read more →

Since the recent announcement of various changes to the taxation of unincorporated property businesses, there has been renewed interest in incorporation: would it be possible to shelter property income and capital gains inside the lower Corporation Tax regime? Unfortunately, this apparent quick-fix for property business owners is fraught with dangers for the unwary. For example:.. read more →

Just a quick friendly reminder that very soon after Christmas comes – chucking out dying trees, returning unwanted gifts, decluttering baubles and… preparing for the 31st January tax deadline! While you’re taking time off work, this could be an ideal opportunity to get your paperwork in order.  I can do all of the organisation at.. read more →

HOW THE RESTRICTION OF RELIEF ON BTL MORTAGE INTEREST WILL AFFECT LANDLORDS By now I am sure you are all aware of the buy to let “bombshell” within the Chancellor’s Summer Budget – the proposal to allow income tax relief on BTL finance costs at the basic rate of tax only – but I thought.. read more →

A brief summary : From 6 April 2016: Rent-a-room relief to be raised to £7,500 The 10% wear and tear allowance may be reformed (subject to consultation) From 6 April 2017: Higher rate relief on mortgage interest will be restricted for buy-to-let landlords. Rent a room relief The applies to private landlords, the owners of.. read more →

The Summer Budget was surprisingly jam packed of tax and relief changes that will affect businesses, many in a positive way, however, on some changes the jury is still out. The following is just a brief overview of the main items that I believe will affect SMEs and is not meant to be a full.. read more →