While this is fundamentally a legal issue rather than a tax issue, it carries significant tax repercussions. Capital Allowance Compliance is especially critical when claiming deductions on property-related expenditure. When claiming capital allowances on…
Inheritance Tax (IHT) Under Schedule A1 of the Inheritance Tax Act 1984, shares in a company that owns UK residential property are not treated as excluded property. As a result, they remain within the scope of UK inheritance tax. The portion of the company’s…
Processing data for a property company involves the following (list not exhaustive): If a property agent is used: Obtaining agency statements, converting them so they can be uploaded to an agency ‘bank account’ on the accounting software. The ‘conversion’ involves…
From 6 April 2017 full interest expenses can no longer be deducted from rental income, a Tax Reduction Amount must be calculated instead. The tax liability of a basic-rate taxpayer could remain unchanged, if the new profit calculation does not push the basic-rate…
A lot of people let out rooms in their residence for extra income. This raises the question whether they need to pay tax on the income generated from renting out a room. If you are letting a room or rooms (furnished) in your main residence, then there is a special…