1. When do I need to start planning? As early as possible as your circumstances and exposure to IHT will change over time. Early on, an insurance policy might be all that is necessary but more complex planning will be appropriate as wealth increases. 2. Can I afford to make…
Continue Reading
Furnished holiday lettings have a number of tax advantages compared to standard residential lets, and one of the key ones is the availability of business asset rollover relief. This enables a landlord of a furnished holiday let to sell one property and invest in another without immediately crystallizing any associated…
Continue Reading
Spouses and civil partners benefit from special rules for capital gains tax purposes which allow them to transfer assets between them at a value that gives rise to neither a gain nor a loss. The transferee spouse/civil partner effectively takes on the transferor’s base cost. This can be very useful…
Continue Reading
As we come to the end of 2021, its time to start thinking about the budget for next year. One thing is certain – uncertainty. Business planning and budgeting have become increasingly complex in today’s uncertain and volatile environment. Firms have had to adapt and become more agile in order…
Continue Reading
Dividends have their own tax rules and their own rates of tax. For business owners understanding how dividends are taxed is crucial. The rules and the rates applicable in the same way regardless of whether the dividends are paid from your personal or family company as part of a profit…
Continue Reading
Childcare costs can be very expensive and any help is welcomed, particularly where you can benefit from that help tax-free. There are various routes by which this is possible. Government tax-free top-up scheme Under the Government scheme, you can open an online account and deposit money which is used to…
Continue Reading
For tax purposes, furnished holiday lettings are something of a special case and benefit from a number of advantages not available to standard residential lets. One of these advantages is in relation to the treatment of interest and finance costs. Residential landlord – Restriction of relief Residential landlords can now…
Continue Reading
The additional stamp duty land tax (SDLT) rate of 3% is payable by purchasers of residential properties costing £40,000 or more and if all of the following conditions apply: 1) it will not be the only residential property worth £40,000 or more owned (or part owned) by the purchaser anywhere…
Continue Reading
For many the lure of a renovation project is strong and for those looking to generate rental income, doing up a dilapidated property to let out may make commercial sense. When buying an investment property, the addition of the 3% SDLT supplement means that the SDLT hit may be significant.…
Continue Reading
Capital allowances are the tax equivalent of depreciation and the mechanism of providing tax relief for certain items of capital expenditure. However, with the exception of cars, capital allowances are not available where accounts are prepared under the cash basis; instead, relief may be available as a deduction in computing…
Continue Reading