Capital Gains Tax / 19 posts found
June 2016 Q&A
Q I am thinking of purchasing a new house that I will use as my main residence, but I will still own other properties. Will I be liable to the new 3% stamp duty land tax (SDLT) change? A: HMRC guidance on the new higher rates of SDLT for purchase of additional residential properties explains that if a previous main residence is replaced within three years, then you will not be liable to the additional 3% SDLT charge, even though you own other residential properties. Q I commenced trading as a service provider on 1 September 2015 and now wish [...]
May 2016 Q&A
Q1. How do I work out my share of a capital gain? I owned a quarter share in a property that was sold in 2015. It was not my main residence at any time during my period of ownership. I am trying to work out my share of the capital gain arising on the property. Do I simply divide the purchase price, sale price, and any improvement costs by four to work out how much tax I will have to pay? A: Assuming that all the improvement costs and the sale proceeds relating to this property were 25% your responsibility, [...]
Stamp Duty Land Tax (SDLT) on additional properties
Proposals to bring in higher rates of stamp duty land tax (SDLT) on purchases of additional residential properties are expected to be finalised in time for the forthcoming Spring Budget on 16 March 2016. SDLT is paid on the purchase of residential property in increasing portions of the property price above £125,000. Current rates are as follows: SDLT for a property with purchase price of up to £125,000 is currently 0%; the proposed additional properties rate in this band is 3%. SDLT on the next £125,000 of the purchase price is currently 2%; the proposed additional properties rate in this [...]
Innovative Finance ISAs
From 6 April 2016, a new type of Individual Savings Account (ISA) will be launched – the Innovative Finance ISA. This new ISAs will be able to hold peer-to-peer (P2P) loans, which often pay significantly higher returns than cash accounts. Broadly, P2P lenders act as middlemen by matching people who wish to invest cash with those who want to borrow money. From 6 April 2016, interest and gains from P2P loans will qualify for tax advantages where these loans are made through an Innovative Finance ISA. There are currently two types of ISA – cash ISA and stocks and shares [...]
January 2016 Q&A
Q. What is our IHT position following a change of ownership? In 2014, my partner and I changed the ownership status of our house from joint tenants to tenants-in-common. At that time, my share of the equity was reduced from 50% to 25% and my partner's was, in turn, increased to 75%. Does this count as a lifetime gift for inheritance tax purposes (IHT)? A If you are married to you partner (spouse or civil partners), then the change will not count as a lifetime gift (a potentially exempt transfer (PET)) as it will be treated as an inter-spouse/civil partner [...]
Tax Planning
I don't expect Jimmy Carr saw the funny side when Prime Minister David Cameron denounced as immoral his use of a tax avoidance scheme that reportedly cut his tax bill to just 1%. He wasn't breaking the law and his use of the "K2" scheme had been fully disclosed to HMRC. But the tide of moral indignation swamped the cheeky chappy and forced him to admit a "terrible error of judgement." The scheme had been recommended by his financial advisor and that got me thinking about our role in advising clients on the best ways to manage their tax affairs. [...]
Capital Gains Tax and the Family Home
This is the third and final post (at least for now) relating to tax on properties. It covers capital gains tax on your main residence. As always, please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Capital Gains Tax and the Family Home The capital gains tax (CGT) exemption for [...]
Buy to Let Properties
Following our post about the tax aspects of property investment, this covers issues relating to 'Buy to Let' properties. As always, please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Buy to Let Properties In recent years, the stock market has had its ups and downs. Add to this the [...]
Property Investment : Some Tax Aspects
A number of clients have raised questions concerning property investment. This post covers some of the general issues, but please see the disclaimer at the end!!! if you want to discuss how any of these issues – or other tax and related business matters – may affect your business please get in touch (email here or telephone 01905 21411) for a free, no-obligation discussion. To sign up for our monthly Newsletter for Small Business visit our webpage here. Property Investment: Some Tax Aspects Investment in property has been and continues to be a popular form of investment by many people. [...]