Private Residence Relief: Tables Turned On HMRC!
Individuals who dispose of a dwelling house sometimes find themselves in disputes with HM Revenue and Customs (HMRC) over whether private residence relief (PRR) is due on the disposal of the property for capital gains tax (CGT) purposes (under TCGA 1992, s 222). Numerous cases have reached the courts and tribunal over the years. Burden […]
Incorporation: A Borrowing Trap
Many landlords introduce properties into their rental businesses, which may have already been held for some time (e.g. gifted or inherited property). Those landlords are, in effect, introducing capital into the business, broadly equal to the market value of the property when it was introduced, less any outstanding mortgage, etc. Allowable borrowings HM Revenue and […]
Incorporation: A Borrowing Trap
Many landlords introduce properties into their rental businesses, which may have already been held for some time (e.g. gifted or inherited property). Those landlords are, in effect, introducing capital into the business, broadly equal to the market value of the property when it was introduced, less any outstanding mortgage, etc. Allowable borrowings HM Revenue and […]
Business Property Relief – Not So Fast!
Business property relief (BPR) is a potentially generous form of inheritance tax (IHT) relief, which can reduce transfers of ‘relevant business property’ (eg shares in an unquoted company) during lifetime or upon death at rates of up to 100% (or alternatively 50%), if certain conditions are satisfied (IHTA 1984, ss 103-114). However, BPR will generally […]
Private Residence Relief: Another Disappointed Taxpayer
Private residence relief (PRR) for capital gains tax (CGT) purposes is potentially very generous. For example, a UK resident individual who is a higher rate taxpayer is liable to CGT on a residential property gain at 28% (for 2017/18). However, if PPR is available in full, the individual’s gain on disposal is not a chargeable […]
Private Residence Relief: Another Disappointed Taxpayer
Private residence relief (PRR) for capital gains tax (CGT) purposes is potentially very generous. For example, a UK resident individual who is a higher rate taxpayer is liable to CGT on a residential property gain at 28% (for 2017/18). However, if PPR is available in full, the individual’s gain on disposal is not a chargeable […]
Avoid Paying HMRC By Cheque!
Many taxpayers pay their tax liabilities close to the statutory deadline for making such payments. For example, an individual who faced a large tax bill on 31 January might have needed time to find the necessary funds. Pay on time…or else? If the individual was unable to pay by 31 January, it would not necessarily […]
Avoid Paying HMRC By Cheque!
Many taxpayers pay their tax liabilities close to the statutory deadline for making such payments. For example, an individual who faced a large tax bill on 31 January might have needed time to find the necessary funds. Pay on time…or else? If the individual was unable to pay by 31 January, it would not necessarily […]
Tax Return Estimates – Careless Or Deliberate?
The use of an estimated figure may sometimes be necessary when preparing a tax return. For example, records of a particular source of income may have been lost, and it might not be possible to obtain the relevant information from third parties. Is it accurate? HM Revenue and Customs (HMRC) acknowledges that taxpayers will occasionally […]