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

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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Disguised Remuneration Settlement Opportunity – The clock is ticking

On 1st June 2018, HMRC offered a final settlement opportunity to those that have used schemes involving disguised remuneration (“DR”) loans (such as those taken from Employee Benefit Trusts) by extending the deadline for taxpayers to register their interest in exploring a settlement with HMRC by a further four months.

The current guidance explains that settling now could allow taxpayers to sidestep the impending April 2019 charge on outstanding DR loans, the potential costs of legal action, and also eradicates the possibility of further penalties or interest being incurred. In addition, you may be able to arrange a payment plan to pay the liability in instalments depending on your circumstances.

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