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Identifying a UK property rental business
There are four different types of property business, and each are taxed differently. In this article we define each business type and explain what you need to know about their tax treatments. #propertytax #landlord
60-day window to report residential property gains
Taxpayers now have 60 days rather than 30 to inform HMRC about chargeable gains on property. In this article learn what a chargeable gain is, when you should report it and how. #propertytax #sellingproperty
Is a property company a tax-efficient option?
Read this article to discover the tax implications of operating your residential property let through a company #propertycompany
The Construction Industry Scheme and property investment companies
In this article you can find out when the CIS might apply to a property investment company. #CIS #deemedcontractor #mainstreamcontractor
Holiday lettings – beware of longer lets
Read this article to find out whether longer lets may jeopardise the favourable tax rules for furnished holiday lets, and why they need not #fhl
Take advantage of the rent-a-room scheme
Read this article to discover how you can earn tax-free rental income under the rent-a-room scheme #rentaroom
Lettings relief – do you qualify?
If you let part of your home, private residence relief is not available on any gain relating to the let part. However, if you share your home with the tenant, you may benefit from lettings relief. Read this article to find out more.
Are you able to claim small business rate relief for your furnished holiday let?
Read this article to see whether you are eligible for small business rate relief on your furnished holiday let #smallbusinessraterelief
Can you benefit from rent-a-room?
You can potentially earn rental income tax-free if you let out a furnished room in your own home. Learn more about the rent a room scheme in this article. #propertytax #rentaroom
Making use of the property income allowance
You can earn a small amount of income from your properties tax-free. Make sure you’re benefiting from the property income allowance by reading this article. #propertytax #landlords
Taxation of Buy to Let Properties
The income is treated as the profits of a Property Income Business. If the owner of the property is an individual or a trust the profits are charged to income tax for the tax year to 5th April. If the owner is a company the profits are charged to corporation tax for the accounting period of the company.
Buying a property to let – the importance of keeping records from day one
For tax purposes, good record keeping is essential. Without complete and accurate records, it will not be possible to provide correct details of taxable income or to benefit from allowable deductions. Aside from the risk of paying more tax than is necessary, landlords who fail to take their record keeping obligations seriously may also find that they are on the receiving end of a penalty from HMRC.
Curtailment of letting relief
Landlords have been hit with a number of tax hikes in recent years, and this trend shows no signs of abating. From 6 April 2020, lettings relief – a valuable capital gains tax relief which is available where a property which has at some point been the owner’s only or main residence is let out – is seriously curtailed.
Property income receipts – what should be included?
When calculating the profit or loss for a property rental business, it is important that nothing is overlooked. The receipts which need to be taken into account may include more than simply the rent received from letting out the property.
Jointly-owned property – who pays the tax?
Where property is jointly-owned, the way in which the rental income can be split between the joint owners for tax purposes depends on whether the joint owners are married or in a civil partnership or not.
Making good use of the £1000 property allowance
A new property allowance of £1,000 was introduced from 6 April 2017. The allowance means that individuals with income from property of less than £1,000 do not need to pay tax on that income. Further, they do not need to tell HMRC about it. The allowance is available in addition to the personal allowance (and other allowances, such as the marriage allowance, to which the individual is entitled).
Using a Limited Company to Save Property Tax
The analysis of whether it is beneficial for a property investor to use a limited company can be complex and this helpsheet aims to identify some of the key advantages in considering a limited company for this purpose.