Under normal circumstances, individuals do not pay capital gains tax on the sale of their main residence. However, those in a partnership or marriage would normally have only one main residence between them.
If you are self-employed (sole trader) or part of a partnership; with a business year-end date outside of 31 March to 5 April, you must take advice from your accountant.
In a sleight of hand similar to fiscal drag on income tax bands, the Treasury will instantly increase 2023/24 revenue from the Annual Tax on Enveloped Dwellings (ATED). This tax is charged to Non-Natural Persons (NNPs) holding a UK dwelling - not individuals. While the changes have slipped under the radar, with little coverage, it is yet another enhanced tax burden for those impacted by the regulations.
When the Trust Registration Service (TRS) was created back in 2017, there was criticism that it needed to go further. The original regulations were introduced as a consequence of the EU Anti-Money Laundering Directive. Even after Brexit, the UK authorities have agreed to maintain the TRS, which can be used with EU partners to identify potential issues.
All companies (whether UK or not) holding UK residential property valued at over £500,000 are subject to the Annual Tax on Enveloped Dwellings (ATED). This could mean more properties are likely to breech the £500,000 limit and fall into the ATED regime for the first time.
As an outsider looking in, surely the taxation of property gains is relatively straightforward? Understandably, maybe there are different rates for companies and individuals, but how much more complicated can it be?
When you mention tax and the property market, people automatically assume you are talking about SDLT (stamp duty land tax). However, many people are unaware that value-added tax (VAT) is a factor in many property transactions.
Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022.
As the term suggests, an LLP is a type of partnership where the liability of each member is limited. In this case, to the investment/obligations made by each member.
The Residential Property Development Tax (RPDT) origins can be traced back to the horrific Grenfell Tower fire of 14 June 2017. Issues found with the cladding and the building led to a UK wide review, highlighting many more buildings with similar problems. Consequently, after protracted legal wrangling, the UK government eventually agreed to cover the cost of remediating cladding issues.