Family Investment Companies – What You Need To Know
UK Landlord Tax Blog
by Eleanor
5d ago
With the rise in landlords buying property through limited companies, now thought to be more than 50% of all new buy-to-let purchases, the use of a Family Investment Company (FIC) structure offers landlords a robust long-term way to hold property and pass this to the next generation. Understanding what a FIC is, how it works, and what it can and cannot due is crucial for any landlord considering using this structure. Here we go through the most frequently asked questions about FIC’s to dispel any myths, and misinformation and provide answers to commonly asked questions. What is a Family Invest ..read more
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Meet Arnie: The AI Chatbot Revolutionizing Property Tax Assistance for Landlords
UK Landlord Tax Blog
by Eleanor
3w ago
Keeping up with tax obligations and financial regulations is no easy task in the fast-moving world of property management. This is why we have launched “Arnie”, an industry-leading AI chatbot to help our visitors answer their property tax questions quickly. Say Hello to Arnie, Your New Property Tax Assistant Our chatbot represents a significant leap in leveraging artificial intelligence to simplify property tax management. This state-of-the-art chatbot is tailored specifically for landlords, providing immediate, accurate, and detailed responses to a wide range of tax-related queries. Why Arnie ..read more
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Furnished Holiday Lettings – What You Need To Know Next
UK Landlord Tax Blog
by Eleanor
2M ago
The 2024 Spring Budget included the announcement that furnished holiday let (FHL) status will be abolished from April 2025. So what are the implications for FHL business owners who decide to continue their business – as well as those who want to sell up? FHL status – recap When a letting business qualifies as an FHL, it does not amount to a trade, but a number of tax breaks apply that do not apply to a general letting business. These are: business asset disposal relief (BADR) can apply on a disposal of the business; holdover and rollover relief can be claimed; finance costs can be deducted in ..read more
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Personal allowances for non-residents and dual residents
UK Landlord Tax Blog
by Eleanor
3M ago
If you are living abroad, or you are a foreign national, and you own property in the UK in your personal name, you are still entitled to the UK personal tax allowance depending on your nationality and your country of residence. In 2024-25 this means that the first £12,570 of profits would be tax-free. If the property is jointly owned that would mean £25,140 between a couple if they are both entitled. Many nonresidents and ex-pats live in countries with a lower rate of taxation than the UK and some with no taxation at all on income from the UK. So this could be a very useful way to receive £12 ..read more
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What Is an Associated Company?
UK Landlord Tax Blog
by Eleanor
4M ago
An associated company refers to a situation where two or more companies are connected in a way that allows one to influence or control the other. Here are the key points you need to know: Definition: Two or more companies are considered associated when the same person or group of persons can control both, either personally or through their interests in other corporate shareholders. Control Criteria: Direct Control: One company has control over the other. Mutual Control: Both companies are under the control of the same person or persons. Control Tests: Control can be determined based on fact ..read more
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A Closer Look at the Recent Capital Gains Tax Cut
UK Landlord Tax Blog
by Eleanor
4M ago
Finally, the main event. The moment we had all been waiting for. The Chancellor announced a cut to Capital Gains Tax on the sale of residential property. Property gains, the one type of gain that attracts a higher rate of tax relative to other assets, will be taxed at 24 percent, down from 28 percent for higher earners. Happy days surely? We have argued for years that this extra taxation has a perverse impact on the market and is actually holding back natural disposals of stock, locking up funds that might otherwise be reinvested. This must be a major victory for common sense. Perhaps. Perhaps ..read more
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Furnished Holiday Lets to End in April 2025
UK Landlord Tax Blog
by Eleanor
4M ago
In his budget on 6th March, Chancellor Jeremy Hunt announced the end of the Furnished Holiday Letting Regime. The stated aim was to make more homes available to local people, particularly in holiday hotspots. So what does this mean for landlords with FHLs?  The abolition of the furnished holiday lettings (FHL) regime will mean that individuals operating FHL businesses will lose several key tax benefits. The implications will undoubtedly affect any landlord with a mortgage and in our opinion will see a shift to ownership in a limited company to avoid interest relief restriction under secti ..read more
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2024 Spring Budget Summary for Landlords
UK Landlord Tax Blog
by Eleanor
4M ago
The 2024 Spring Budget on 6th March held some major changes that will affect all landlords in general and owners of Furnished Holiday Lets in particular. We outline these changes below from the information currently available from the Government whilst we await the fine details and actual legislation which is yet to be released.  Stamp Duty Land Tax – Multiple Dwellings Relief Multiple Dwellings Relief (MDR) is a Stamp Duty Land Tax (SDLT) relief available to any purchaser buying 2 or more dwellings in a single transaction, or linked transactions, and allows the purchaser to calculate the ..read more
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Short Term Lets in England Will Soon Need Planning Permission.
UK Landlord Tax Blog
by Eleanor
5M ago
The Housing Secretary Michael Gove has announced that legislation is to be introduced in England this summer to require owners of short term lets to obtain planning permission from their local council prior to letting.  Similar rules already exist in Scotland and Northern Ireland with Wales set to introduce their own rules as well.  The move is an attempt to manage the housing crisis specifically where long-term rental availability is greatly reduced due to Airbnb-type lettings.  The legislation will enable councils to restrict the number of licenses for short term lets in a spe ..read more
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Is It A Repair Or An Improvement?
UK Landlord Tax Blog
by Eleanor
5M ago
As UK property accountants and tax advisers, we are regularly in discussions with our clients as to the correct treatment of expenditure relating to property letting income.  Expenditure will be classified as either Capital or Revenue. Revenue expenditure items are typically the day-to-day expenses, incurred in the normal course of running and maintaining a property to generate rental income. The expenses are normally recurring and can be deducted from the rental income to calculate the taxable profit. Examples of revenue expenditure will include:  Repairs and maintenance, letting ag ..read more
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