Common issues with VAT and Property
VAT Partner, Sandy Cochrane, has created a comprehensive video addressing common issues associated with VAT and Property. The intricacies of VAT in land and property transactions are complex, so it is important to understand the nuances. Accurate reporting of VAT is imperative to prevent potential penalties from HMRC. Historically, VAT has been considered a ‘support […]
Should I incorporate my buy to let property business?
Written by Tax Partner, Michaela Lamb Since the announcement made in the 2015 Summer Budget introducing a restriction on the tax relief provided on mortgage interest for individuals, the most common question we have been asked is “Should I incorporate my Buy to Let Property Business?”. Translated this is simply, “should I put my property […]
Stamp Duty Land Tax (SDLT) – A Beginner’s Guide
What is SDLT? SDLT is a capital tax payable by the purchaser of both freehold and leasehold interests in property and land situated in England or Northern Ireland. It is calculated by reference to a percentage(s) of the chargeable consideration. This would usually be the property’s purchase price though it can also include the release […]
Mixed use property portfolio – 7th November 2023 deadline to submit certain annual adjustments for VAT periods ending on 30 September 2023
Written by VAT Partner, Sandy Cochrane It is commonplace for taxpayers to own UK property which contains a mixture of residential and commercial. For example, where a building will have commercial premises on the ground floor, and residential premises above. These taxpayers are likely to be partially exempt for UK VAT purposes, receiving taxable income […]
Business property relief: IHT exemptions for business activity
Written by Tax Partner, Parminder Chattha Inheritance Tax (IHT) is chargeable on the value of an estate when someone dies, although it could also be chargeable on certain lifetime transfers, as well on property held within a relevant property trust. The rate of tax is 40% above a certain exempt amount, and there are various […]
Rules for the reporting and payment of capital gains tax for the disposal of UK residential property
Written by Tax Partner, Michaela Lamb HMRC introduced new rules for the reporting of capital gains tax from 6th April 2020. We have set out below a list of FAQs which we hope will assist you in understanding these rules. I have sold a UK property, what do I need to tell HMRC? If […]
VAT option to tax: Increased risks on property transactions
From 1 February 2023, HMRC is reducing its option to tax service which will increase risks for taxpayers, their solicitors and agents when dealing with property transactions, especially when trying to achieve a VAT-free Transfer of a Going Concern (TOGC). Previously, HMRC have provided acknowledgement letters to taxpayers and their agents when an option to […]
What are my tax obligations as an Airbnb host?
What’s my Airbnb’s tax liability to HMRC? Much like landlords who rent to tenants, Airbnb hosts also have to declare their income to HMRC, depending on the amount of money they receive from their property. In 2020, Airbnb shared income data from 225,000 UK hosts with HMRC, meaning an increasing number of people had their earnings […]
Five things to consider when forming a property syndicate
Although the property market in the UK has seen a downturn in recent years, putting money into property can still be a good choice for those wanting to invest or generate an income. Property syndicates involve a group of investors combining their funds to make a joint investment in commercial or residential property. Here, we […]
Overseas companies owning UK property (Real Estate)
The UK Register of Overseas Entities was launched on 1st August 2022. This requires overseas companies owning UK property or a trust that owns UK real estate to register with Companies House. The Register has been created under section 3 of the Economic Crime (Transparency and Enforcement) Act 2022. This requires an overseas […]