HowProperty
Tax Advisors can help you keep more of your property gains
Investing in propertyhas become a household
occupation in the UK over the last 20 years.
With some of us landlords owning just one buy to let property or turning
it into a business creating a portfolio of properties. Others of us have decidedto invest in
property development projects making substantial capital gains as we went
along. Whatever style of investment we
adopted in, one inevitable consequence is that of taxation,be it in the form of
capital gains tax, income tax, stamp duty etc.
Over the years the incumbent political
parties have altered the landscape of capital gains regime on investment
properties several times. Such that getting advice from Property Tax Advisors becomes vital
part of our decision making in the final returns of property investment.
Whether you are a landlord holding a single property, or holding multiple
properties, even under a shelter of a limited company, as a developer or a
construction firm, we are all subject to a property related tax.
With the economy continuing to evolve and
government policies forever changing its’ never been so important to have
specialist Property Tax Advisors on side to
ensure the best possible returns are gained and even more importantly the
correct taxation is calculated and settled on time. For example there are
instances and exceptions where income tax may apply instead of capital gains
tax so it becomes very important to establish the applicable regime of tax as
income tax rate can be far higher than capital gains tax rates.
Investing in property is a high risk
business regardless of your budget be it in thousands or millions, the gains or
losses can be substantial if you get your sums wrong. Equally, if an incorrect
tax rate or regime is applied, it could result in a nasty surprise when a
Revenue prompted enquiry commences.
Going forward consulting with professional Property Tax Advisors continues to
be essential:
Over the next few years HMRC will be phasing
in a restriction on the tax deductibility of interest payments on your buy to
let mortgage. There are a number of ways
of mitigating the consequences but it depends on individual circumstances and
planning. There are also a number of compliance issues to be met for example from
the 6th April 2018 the government are introducing a policy whereby
there will be quarterly reporting and landlord will be caught by this new form
of reporting.
A tax payer has a clear choice of either
trundling through the maze of taxation and living with the consequences of
their property transaction as they present themselves, or careful and selective
tax planning from Property Tax Advisors will achieve
the desired tax effect beforehand.
