Tax and Property

Bricks and mortar

If there is one area of tax, more than any, that has been burdened by new tax rules over the past few years, then property taxation must be up there!

Examples that need your consideration are:

If you are an individual selling property:

• Is capital gains tax due or is the gain fully covered by main residence exemption?
• Is any gain arising reportable to HMRC within the 60-day limit?
• Do more onerous reporting requirements for non-resident taxpayers apply?

If you are an individual buying property

• Is the additional SDLT due for a second property purchase?

If you are an individual renting property

• Should you consider setting up a limited company to hold your property portfolio which may reduce the tax burden?
• Have you optimised the way property is owned within your family?

If you are an individual owning property

• Will you benefit from the additional residential rate band for IHT on your death?

If you own or you are purchasing or building commercial property

• Are you maximising the capital allowance claims for fixtures in the property?
• VAT is a particularly tricky area, with the option to elect for a property to be a taxable property. This can be useful or even essential in some circumstances, and also consider the VAT domestic reverse charge for building and construction services.

In addition, there are complex rules that apply where a company owns residential property, so do seek advice.

…and this is by no means a complete list of all the considerations for individuals and companies that are building, buying, selling, or renting property.

The good news is that we have the experience of, and understand, the intricacies of property taxation and would be happy to share that knowledge with you.