Tax News

Welsh Income Tax Starts 6 April 2019

From 6 April 2019, the Welsh Government (like the Scottish Government) will be able to set and vary the rate of Income Tax paid by Taxpayers who live in Wales.

CGT on Property Sales due within 30 Days from 2020

Draft legislation in the next Finance Bill will introduce significant changes to the reporting of residential property disposals and the payment of CGT from 6 April 2020. 

Currently, non-UK resident taxpayers disposing of UK residential property are required to report the disposal to HMRC within 30 days. The new legislation extends this reporting obligation to UK resident taxpayers and at the same time will introduce a new payment on account regime.

Rules for "Rent a Room" Relief to be Tightened up from 6 April 2019

HMRC propose to restrict the availability of “rent a room” relief to situations where the taxpayer is living in the let property for at least some of the time that the accommodation is let. Hence renting out a house during Wimbledon fortnight while the owners are absent would not qualify from 6 April 2019!

Short-Term Business Visitors

HMRC are consulting on ways to simplify the tax treatment of short-term business visitors from the foreign branch of a UK company, to ensure the UK is an attractive location for business headquarters.

Notify HMRC of EBT and Similar Loans by 30 September

HMRC have published revised guidance on settling tax liabilities in relation to the use of disguised remuneration schemes involving Employee Benefit Trusts (EBTs) and similar arrangements.

In order to settle on preferential terms before the outstanding loan charge arises on 5 April 2019, taxpayers must register with HMRC and provide all of the required information by 30 September 2018.

Trust Taxation

We are still awaiting the promised consultation on the taxation of trusts announced in the Autumn 2017 Budget. However, in the meantime, HMRC have updated their guidance on how different types of trust income are taxed, what management expenses and reliefs can be deducted, and understanding the tax pool.

Advisory Fuel Rate for Company Cars June 2018

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 June 2018.

Note that for hybrid cars use the equivalent petrol or diesel scale charge. However, it may be more beneficial to compute the actual cost.

Where there has been a change the previous rate is shown in brackets.

Extracting Money from my Property Company

There are three ways of extracting money from your property business and the best option usually depends on how far into the property journey you have travelled. These are by way of Director or Shareholder Loan Repayments, a Salary and/or Dividends. Let’s cover these in a little further detail.

Property Company Tax vs Landlord Tax Return

To enable us to explain the differences between how you pay tax as a company and how you pay as a Landlord, the easiest way is to explain the two regimes that are currently in place.

Company Taxation

Why Set Up a Limited Company for My Property Business?

Sadly the answer to this question is “It Depends!!” However, there are some general principles that you can consider when deciding what is the best approach for you and your business.

There are some questions which depend on your tax position, and a few that relate to your own preferences. These are some starting questions to ask yourself:

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