We have a client who is buying a principal residence for cash following an inheritance but will still retain their current principal residence until it is sold. It is being marketed soon.
Is there a CGT issue here please due to the cross over?
The client should be fine as providing the property they are selling has been their main residence at some point during ownership, they get PPR relief for the last 9 months of ownership even if they have moved into a new home in that time.
I guess the trouble starts if it takes longer than 9 months from moving out to sell the old home as then starts a period of time where the property is not covered by relief, but even in the case where it takes say 18 months to sell, if the property has been owned for say 10 years, it would only be 9 months out a total of 120 months not covered by the relief so the fraction of the gain not covered by relief would be small (and possibly within CGT annual exemptions)
My client is buying a new house and wants to buy an office desk but not an Ikea desk but something stylist and probably expensive so it fits in with her home.
Is this something she can do and claim through her sole trader accounts? Is there any kind of principles are the price of an item and reasonable test from HMRC.
Providing the desk is used 100% for business use, the cost isn’t an issue if she is buying it from an unconnected third person.
If she uses the desk for personal use as well as business use then she should disallow a reasonable ‘private use’ percentage of the cost.
Is it considered a supply and VAT chargeable and, subject to breaching thresholds, the trader (a company in this case) would need to register?
They’re a finance broker and lenders pay a commission, my take is that their services are more consultancy and therefore a supply and should be registered. They’re saying others in the industry aren’t charging VAT – so wondering if there’s an exemption somewhere?
If it is a commission earned in the provision of a professional service then it would be VAT-able.
However, commission received by an intermediary in connection with financial services are exempt from VAT if the role of the intermediary simply to make an introduction. i.e the bringing together a person seeking a financial service with a person who provides a financial service.
So it depends on the scenario…
I have a question about SDLT – a client is buying a freehold block, with 7 flats in one single purchase for £341,000 so an average of £48,700 per each flat. I am not too sure on the Stamp Duty treatment of this, would it qualify for Multiple Dwellings relief or ‘non residential’ rates?
Providing there is no headlease and none of the flats are subject to a long lease the purchase of the freehold is treated as if it were an interest in the individual dwellings. As such, this would be a relevant transaction for the purposes of MDR relief.
If the conditions are met, MDR can be claimed but in almost all examples like this, this higher rate for additional dwellings will apply.
If MDR can be claimed and the average price of each flat is £48,700 then only a 3% SDLT rate would apply.
If you any any questions like the above please drop us an email taxpartnerpro@etctax.co.uk
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