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CGT Property Relief Changes

CGT Private Residence Relief Draft legislation to be included in the next Finance Bill will make important changes to the calculation of Capital Gains Tax (CGT) private residence relief. As announced in the Autumn 2018 Budget, there will be a reduction in the final period exemption to 9 months, with stricter conditions for letting relief […]

Read more August 9th, 2019

Stamp Duty Land Tax – Recent Rulings

In a recent ruling, HMRC has lost a case at the tax tribunal where the higher stamp duty rate was not payable. So what happened? A couple purchased an uninhabitable property so completed the Stamp Duty return on the basis that they would only pay a stamp duty bill of £1,500. However, when HMRC received […]

Read more July 4th, 2019

Possible Changes To CGT Private Residence Relief

The government is currently consulting on important changes to Private Residence Relief (PRR), that are likely to be introduced from 6 April 2020. The two possible changes announced in the Autumn 2018 Budget are: Firstly to limit to just 9 months the period prior to disposal that counts as a period of deemed occupation The […]

Read more May 10th, 2019

“Rent A Room” Relief Continues For Airbnb Landlords

Last year HMRC carried out a review of “rent a room” relief, especially at Airbnb Landlords. It proposed that the availability of this generous relief should be restricted to situations where the taxpayer was resident for at least part of the time when the “lodger” was paying rent. The scheme currently exempts from tax gross […]

Read more May 9th, 2019

Scottish Income Tax Rates For 2019/20

The Scottish Parliament has the power to set income tax rates on non-savings and non-dividend income for Scottish taxpayers. It has been confirmed that the 5 band structure and tax rates (19%, 20%, 21%, 41% and 46%) will remain the same for 2019/20. The thresholds for lower tax rates will rise in line with inflation […]

Read more April 8th, 2019

Property Groups – What And Why?

What is a property group? This is a group of companies that is owned by individuals or individual through a holding company which then owns 100% of the shareholdings of the companies owned by the holding company. The only exception being a joint venture company where a smaller percentage such as 40% or 50% may […]

Read more April 3rd, 2019

Interest Rate Relief Restriction or S24

At Shapcotts, we are starting to hear stories of these changes now starting to impact landlords, especially with larger portfolios. Therefore let us show you a couple of examples so it is clear how this may affect you if you have property income that you are receiving in your own name. The example below shows […]

Read more April 3rd, 2019

Student Loan Payments From Property Income

Now that you have rental income you will have an increased income. This is great news for you as it will improve your personal wealth and finances. However, what happens if you have a student loan? When you complete a tax return you also calculate each year any student loan repayments that may be due. […]

Read more April 2nd, 2019

CIS – What Is It And Will I Need To Register?

We have spoken to a number of clients and potential clients over the last couple of months who have been looking at developing or putting up a new build on the land of a property that has been purchased. Therefore, we wanted to briefly cover the Construction Industry Scheme (CIS). What is it and when […]

Read more October 2nd, 2018

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 […]

Read more August 13th, 2018

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 As a company, you pay tax under the corporation tax regime. For these purposes, you collate all […]

Read more June 27th, 2018

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 property business. There are some questions which depend on your tax position, and a few that relate to your own preferences. These are some starting […]

Read more June 27th, 2018

What Allowances Can You Claim On Replacement Of Domestic Items?

As a Landlord, it’s always important to ensure that you know what you can be claiming for. The Government allows landlords to claim tax relief on money spent to replace ‘domestic items’ in their rental properties. This came into effect from 5 April 2016 and the replaces the previous wear and tear allowance basis, which […]

Read more April 10th, 2018

Can I Claim My Legal Expenses?

The answer to this question is that it depends what your legal expenses relate to. So let us cover a few examples in our article today. Generally, legal fees are capital if they relate to a capital matter, such as the purchase of a property. Therefore costs incurred in respect of acquiring, adding to or […]

Read more April 10th, 2018

5 Things To Consider When Transferring Properties Into A Company

This, unfortunately, is not a simple question to answer as there are many possibilities. So this article will provide some insight into some of the aspects that you will need to consider. We would recommend speaking to a professional such as ourselves ahead of making any final decisions to ensure that you don’t find you […]

Read more April 10th, 2018