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 »
Updates to the High-Income Child Benefit Charge (HICBC) for the tax year 2024/25 introduce significant adjustments that will impact many families. The key change involves raising the threshold at which the charge begins, from £50,000 to £60,000. This article explores the implications of these changes, the differences in impact on single- and dual-income families, and… Read more »
In April 2020, changes were introduced that limit the tax relief landlords can claim on finance costs for residential properties. These changes, which restrict mortgage interest relief to the basic rate of Income Tax, have far-reaching implications for landlords to this day. Understanding the details of this relief, its calculation, and the legislative provisions is… Read more »
When selling a business, the consideration received may be deferred and contingent on specific events. This means the exact amount payable may be known (ascertainable) or unknown (unascertainable). Understanding the tax implications of these different types of considerations is crucial for effective financial planning and tax management. (Read Time: Approx. 5 minutes) Topics Discussed: Deferred… Read more »
