Property

Tax on Residential Property

Property, Tax l

First-time buyers in England, Northern Ireland – and for a short time in Wales – were the biggest winners in the most recent shake-up to affect property taxes in Autumn Budget 2017.

Philip Hammond’s headline measure was to abolish stamp duty for first-time buyers on homes worth up to £300,000, and the chancellor didn’t stop there.

Furnished holiday lettings

Property l

The pros and cons of letting furnished holiday accommodation.

When furnished holiday property is let on a commercial basis for short periods, the owner can benefit from tax reliefs which wouldn’t otherwise be available to residential landlords, providing certain conditions are met.

However, there are also several disadvantages associated with letting property as holiday accommodation whether or not the furnished holiday letting conditions are met.

Read the full article here.

Landlord Tax Changes

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Recent budgets have seen several significant changes to the taxation of income from letting out residential property. These changes are likely to impact on the taxation of all current property landlords, as well as future decisions as to whether to remain or become a landlord.

Download the full PDF here.

Cash basis for landlords

Accounting, Property l

Traders have been able to prepare their accounts using the cash basis since April 2013, as long as they meet certain eligibility conditions.

This option was extended to landlords running unincorporated property businesses from 6 April 2017.

However, while traders must elect for the cash basis, it applies by default to landlords who meet the qualifying conditions.

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Property Income and Tax

CGT, IHT, Personal Tax, Property l

There are many ways to earn an income from property such as residential properties, furnished holiday lettings, commercial properties and renting out a room in your house.

The exact tax treatment and allowable expenses will differ depending on the type of property you own and your level of income.

The good, the bad and the ugly (of the autumn statement)

Accounting, CGT, Law, National Insurance, Payroll, Personal Tax, Property l

goodThe dust has settled on the autumn statement, and it is now clear on the good, the bad and the ugly effecting SME’s, employers and self-employed.

 

The Good!

National Insurance employment allowance increased to £3,000 from April 2016

Extension of the doubling of small business relief rates to April 2017 (good news – make sure you have this if you operate from an office)

The Bad!

3% additional stamp duty land tax will be charged on second homes or investment properties purchased from April 2016, which in added to the reduced relief for interest previously announced from April 2017 is a double hit for active investors

3% differential on Benefit in Kind for diesel cars retained from April 2016 for 5 more years

The Ugly!

Capital gains tax due to be paid within 30 days of completion of any disposal of residential property from April 2019. This ties in with the introduction of digital tax accounts for most taxpayers.

If you have any queries or concerns arising from the autumn statement, contact our team at Morrell Middleton on 01904 691141.

Time to review your inheritance and trust fund arrangements?

Budgets, IHT, Investments, Pensions, Property l

Mortgage calculator. House, noney and document.

Thousands of families who set up “discretionary trusts” so they could leave property to children in a tax-efficient manner will miss out on the Government’s valuable new inheritance tax allowance unless they make significant changes to their will, it has been warned.

Homes left to children through a discretionary trust will not benefit from the “family home allowance”, worth up to £350,000 per couple from 2020, because assets do not pass directly to children. Discretionary trusts – the most common form of trust – were widely used in the past to minimise inheritance tax (IHT).

Are you claiming all the available tax relief on your commercial property?

Accounting, Businesses, CGT, Corporation Tax, Investments, Personal Tax, Property, Uncategorized l

Cartoon-SkylineMost business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?

Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.

Our top 10 tips for writing a winning business plan

Accounting, Businesses, Growth, Property, Shares, Uncategorized l

Business PlanWe’ve been helping organisations to prepare business plans and forecasts for many years. Without exception, it seems like a daunting task for the management team, but it’s really crucial to your success whether starting a new business or wanting to develop an existing business, to have a clear plan and that it can be articulated to the people who can help you make it happen.

“A lack of clarity could put the brakes on any journey to success.”

Steve Maraboli – Behavioral Scientist

Here are our top 10 tips for writing a business plan:

Are you next on the taxman’s hitlist?

Accounting, Auditing, Businesses, CGT, Corporation Tax, IHT, Investments, National Insurance, Payroll, Pensions, Personal Tax, Property, Shares, Tax/VAT Cases, VAT l

Arthur DaleyTax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.

Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.

CONFIRMED – Accountants are sexy beasts

About Us, Accounting, Auditing, Budgets, Businesses, CGT, Clients News, Company Secretarial, Corporation Tax, CSR, Growth, IHT, Investments, National Insurance, Payroll, Pensions, Personal Tax, Property, Shares, Tax/VAT Cases, Uncategorized, VAT l

high-heels-and-thong-370x229According to the adulterous website, IllicitEncounters.com, accountants are the most exciting workers to go on dates with. Not because number crunching is a big turn on, but because their ‘boring’ jobs makes them more interesting in the bedroom, apparently.

Our top 10 tips for writing a winning business plan

Accounting, Businesses, Growth, Property, Shares, Uncategorized l

Business PlanWe’ve been helping organisations to prepare business plans and forecasts for many years. Without exception, it seems like a daunting task for the management team, but it’s really crucial to your success whether starting a new business or wanting to develop an existing business, to have a clear plan and that it can be articulated to the people who can help you make it happen.

“A lack of clarity could put the brakes on any journey to success.”

Steve Maraboli – Behavioral Scientist

Here are our top 10 tips for writing a business plan: