The Knowledge Centre

Introduction Aah yes, a Business Property Relief (“BPR”) case. It must be either Furnished Holiday Lettings or Caravan Parks, I hear you ask. Well, not a million miles away. Here, in respect of the case of Bruce Firth and another v HMRC (“Firth”), we are talking about serviced apartments or, more grandly, aparthotels. Property activities […]

Induction – Property Incorporation When structuring a property investment business in a company mortgage, interest relief remains available in full and can be offset against business profits. On the contrary, only the basic rate tax relief is given to those that operate their business as a sole trader, providing greater benefit to a company structure. […]

UK Landlord Tax Around 2012, George Osborne brought in a number of changes to the taxation of, generally, non-UK property investors. These measures were very successful in raising revenue. It’s my view that this is where the Government had the realisation that taxing bricks and mortar was an effective way of generating tax revenues. As […]

Tax on rented property: the income tax implications of B2L property ownership General position – tax on rented property If you directly invest in UK B2L property then you will be subject to income tax on net rental income from your buy to let properties at your marginal rate of income tax. Essentially, this will […]

What is Capital Gains Tax on a Buy to Let Property? Investing in property to rent can result in attractive financial gains, but it does inevitably complicate your tax affairs. Capital gains tax on a buy to let property is just one of the tax liabilities landlords may have to contend with over the course […]

Background – B2L landlords tax With effect from April 2017, a buy to let property (B2L) investor will be restricted in the amount of interest relief (and other finance costs) on which they will be able to obtain tax relief. These restrictions will be phased in over the next four years and will be fully […]

Tax Planning For Landlords Restructuring an existing UK Property Business – Incorporation Landlords who own their property portfolio’s in personal names may be currently considering transferring the portfolio to a limited company. The incorporation of the portfolio would be advantageous for the following reasons: The Problems Established property portfolios are likely to have significant capital […]

How should I own property – the tax options The majority of investors have tended to own their property portfolio in personal names because it’s beneficial for them to do so when it comes to selling the property. Also, given that some buy-to-let lenders may not lend to limited companies, personal ownership may be the […]