Rent to rent is where a property is let to another party who then let the property out to tenants. There are pro’s and cons to this arrangement but our focus here as the tax advisor was on the tax savings that could be made. This is an actual case but of course, I...
So what has the Spring Statement done for landlords? In short, not much. Indirectly, the measure to cut the VAT on materials such as solar panels, heat pumps and insulation will help if you were thinking of any improvements in this area. Generally, the 5p cut in fuel...
Can you benefit from the £1,000 property allowance? If you have income from land and property, you may be able to take advantage of the property allowance. This allowance can be used in various ways. Tax exemption If your income from property is less than £1,000, the...
The deadline for filing the 2020/21 self-assessment tax return online is 31 January 2022. If you received income from property, you may need to tell HMRC about it on your return. There are designated property income pages for providing details of your property income....
Why use a specialist property tax accountant? It’s a question we get asked regularly and one you may have thought about. The short answer is if you speak to the right property tax specialist you should pay the lowest amount of income tax, Inheritance tax, capital...
Shared ownership can enable an individual to own a stake in a property where they would not otherwise be able to get on the housing ladder. As with other property purchases, stamp duty land tax (SDLT) is payable where you buy a property through shared ownership in...
The government has delayed the start of Making Tax Digital (MTD) to 6 April 2024. In a written statement to the House of Commons on 23 September 2021, it was announced that MTD for income tax self-assessment (MTD ITSA) would be postponed yet again to April 2024. New...
Wear and tear allowances Claiming wear and tear allowances has now changed. In a furnished let, wear and tear of domestic items is inevitable. There will come a time when the landlord will need to provide replacements. From a tax perspective, special rules apply to...
Cash Basis vs Accruals Basis The majority of landlords prepare accounts using the default 'cash basis' where income is recognised when received and expenses when paid (providing that the expense is incurred 'wholly and necessarily' for the business). Although this...
In many ways, HMRC has become much easier to deal with in recent decades. Its officials seem more willing to talk and to give advice – and often more flexible. At the same time, any landlord contacting them should be careful and methodical.