Posts Categorized: Tax

Tax Question of the Week 2

Question My client has a question about principal private residence relief. She resides in a property that has grounds attached to it which exceed half a hectare. Within the grounds of the residence, there is an outbuilding which in the recent past had been lived in by an elderly relative. However, more recently the outbuilding… Read more »

Tax Question of the Week

Question My client has a rental property from which he only receives a small amount of income, he has heard about the new £1000 property allowance and wonders if he can make use of this? Answer The property allowance of £1000 was introduced in the Finance Act (No. 2) 2017. The legislation can found in… Read more »

Tax Question of the Week

Question My client is a director and shareholder of a civil engineering company.  He has now reached his late 50’s and would like to retire from the business and hand the reigns over to his son who is currently a minority shareholder.  His son does not have the cash to buy his father’s shares directly… Read more »

Tax Question of the Week

Question My client owns two residential properties house A and house B. He has never lived in house B but wants to know if he can make an election for house B to be his main residence for PPR purposes, can he do this? Answer Where an individual has two or more residences an election… Read more »

Tax Question of the Week 2

Question My client lets out their home for a fortnight when they go on their annual holiday. The temporary lodgers have access to the whole house and not just a selected room. HMRC guidance on the rent a room scheme states “you can let out as much of your home as you want” and so… Read more »

Tax Question of the Week.

Question My client has recently sold his family company, realising a significant gain and using all of his Capital Gains (CGT) Tax Entrepreneurs’ Relief lifetime allowance in the process. Although he has stepped back from active involvement, he is considering investing a significant amount of money in a trading company and has told me he… Read more »

Tax Question of the Week

Question I have various clients who receive rental income from residential lettings. Can you please remind me of the change to the relief for “wear and tear” allowance and the renewals basis for expenditure within their properties, and particularly how these differ for corporate landlords?   Answer With the exception of furnished holiday lettings, capital… Read more »

Tax Question of the Week

Question Two sisters inherited a property development business when their father passed away. They continued this business as a partnership renovating and developing properties to sell on at profit. One of the sisters wants to buy one of the properties for herself. She is to pay market value but the partnership will make a loss… Read more »

Tax Question of the Week

Question My client has transferred a residential property into a discretionary trust. The value of the property is over the IHT nil rate band. Are there are CGT implications? If the trustees sell the property in the future can they claim principle private residence relief? Answer A transfer into a discretionary trust is a chargeable… Read more »

Tax Question of the Week

Question I have a client who is non-resident in the UK having lived and worked abroad for the last 7 years.  He currently owns a property in the UK that was his main home before he left to work abroad.  Since his departure he has let this property out, receiving rents which have been included… Read more »