When considering passing a buy-to-let property to your child, the goal is often to do so in a tax-efficient way. Gifting property can seem straightforward but carries significant tax implications, particularly when it comes to inheritance tax (IHT) and capital gains tax (CGT). (Read Time: Approx. 4 minutes) Topics Discussed: Options for Gifting a Buy-to-Let… Read more »
Incorporation Relief is a powerful tax incentive that allows landlords to delay paying Capital Gains Tax (CGT) when transferring their property business into a limited company in exchange for shares. This relief can also help landlords save on Stamp Duty Land Tax (SDLT). But how exactly does Incorporation Relief work, and what do landlords need… Read more »
Turning your garden into a profit-generating asset, either by selling it or through development, can seem appealing. However, it’s crucial to understand the tax implications that accompany these transactions. Capital Gains Tax (CGT) and Income Tax can significantly impact your profits unless certain conditions are met, allowing for tax relief. (Read Time: Approx. 5 minutes)… Read more »
Private Residence Relief (PRR) offers a valuable tax break for homeowners, providing relief from Capital Gains Tax (CGT) on the sale of their main residence. However, understanding the qualifying conditions and navigating the complexities can be challenging. This guide breaks down everything you need to know to maximise your PRR benefits, whether you’re selling your… Read more »
In a landmark decision, the First Tier Tribunal ruled in favour of a taxpayer, allowing a claim for Stamp Duty Land Tax (SDLT) Multiple Dwellings Relief (MDR) on a property with an annexe. This case highlights how understanding the specifics of property use can lead to significant tax savings. (Read Time: Approx. 4 minutes) Topics… Read more »
Scammers have crafted what could be the most convincing HM Revenue and Customs (HMRC) scam letter yet, designed to trick individuals and businesses into divulging sensitive tax information. This fraudulent communication uses accurate technical jargon and official HMRC branding, making it alarmingly believable. The letter claims to be part of a “government initiative” to verify… Read more »
When it comes to selling a buy-to-let property, the goal for most landlords is to reduce their tax liability as much as possible. A common query is whether the costs incurred in running the property, such as utilities and local rates, can be deducted from Capital Gains Tax (CGT). The answer, while straightforward, highlights the… Read more »
HMRC has significantly ramped up its use of risk-based profiling, relying heavily on a powerful tool known as Connect. This sophisticated software analyses vast amounts of data, enabling HMRC to build detailed profiles of taxpayers, aiming to identify returns or behaviours that deviate from the expected norm. But what does this mean for you? (Read… Read more »
Transferring your home to your children might seem like a smart move to avoid inheritance tax or simplify estate planning. However, this decision often leads to significant tax implications and other financial pitfalls that can outweigh the perceived benefits. (Read Time: Approx. 4 minutes) Topics Discussed: The Evolving Rental Market The Retreat of Private Landlords… Read more »
Transferring your home to your children might seem like a smart move to avoid inheritance tax or simplify estate planning. However, this decision often leads to significant tax implications and other financial pitfalls that can outweigh the perceived benefits. (Read Time: Approx. 4 minutes) Topics Discussed: The Inheritance Tax Trap A common motive for transferring… Read more »
