News & Events

Taxation of Buy-to-Let Properties

In 2015 the UK Government set out its Five Point Plan for housing which was designed to stimulate housing supply and encourage first-time ownership. Support such as this was welcomed by many as the impact of the global financial crisis, and the critical effects this had on the property development sector, continued to be felt by first-time buyers as they battle astronomical rents and house prices worsened by low salaries. Alongside the introduction of affordable homes, and enhancements to the Help to Buy scheme, the Government has over recent Finance Acts introduced a number of tax changes imposed on buy-to-let investors presumably with the intention of deterring investors from investing further, which the Government believes will free up property for owner-occupiers. Read more

Business Succession and Inheritance Tax…

Clients regularly talk to us about their key points of concern when considering what the future will hold for their valuable assets once they have passed away – squandered inheritance or claims on the estate, and Inheritance Tax.  

Following death, legacies can be carved up by squabbling families, spent or claimed against as part of divorce proceedings, turning valuable, profitable and income producing businesses in to no more than a headache for the recipients of a will.  

Inheritance Tax (“IHT”) can worsen that headache significantly; often publicised as the UK’s most hated tax, it broadly operates by taxing the value of a person’s estate which is over and above the nil rate band (currently £325,000). 

While the nil rate band has been frozen since 2009, property (perhaps the most often inherited asset class except from cash) prices have risen significantly, which has resulted in more and more estates and households becoming liable to the tax.  

IHT can be complex and where due consideration and foresight has not been given, dismay and confusion can ensue at what is generally one of the most emotional periods of our lifetimes. 

Proper planning and forethought can moderate the complexities involved with succession and IHT and can help to provide clarity and control to the taxpayer and their loved ones. With proper planning and support It is possible to protect and retain assets intended to be bequeathed for future generations. We have set out an example below of the planning process a family might go through and the benefits that they and their family could enjoy as a result: 

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Treasure Trove of Tax Breaks & Reliefs Unclaimed!

The Government recently published a press release which highlighted how certain reliefs and tax breaks continue to be underutilised by taxpayers; whether this is due to a lack of awareness of the reliefs or hesitation and uncertainty over eligibility we cannot be certain, but as the Government is effectively giving away millions of pounds in cash which could help to improve an individual’s cash flow or a business become more profitable, we wanted to look into some of these well-known but not so well-used reliefs and tax breaks in greater detail:

Marriage allowance

Marriage Allowance was introduced in April 2015 and it allows a non-taxpaying spouse or civil partner to transfer up to £1,190 of their personal allowance (currently £11,850) to their partner thereby increasing their allowance and decreasing the amount of their income that is liable to tax, making it a valuable relief to take advantage of if eligible.

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Current State of Tax Affairs for Buy to Let Landlords

Over recent years the Government have implemented a series of targeted tax changes designed to bring buy-to-let landlords “in to line” by effectively increasing their tax burden, with the overarching intention of discouraging multiple home ownership and creating an encouraging environment for first time buyers.

Recent reports show that growth in the rental market has slowed, however, it is difficult to attribute this to the tax changes alone, as property prices remain high, rental stock is low, and mortgage regulations are being tightened, all of which can impact on a person’s decision to rent or buy property.

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