 |
Here is the full collection of tax tips which are scattered
throughout this website. |
|
 |
 When somebody dies?
When somebody dies make sure the deceased’s assets are valued on an as is basis’ which will give a lower probate value than an insurance new-for-old’ basis. The lower the total probate value of the deceased’s estate, the less inheritance tax is payable.
Exempt from Stamp Duty Land Tax?
When buying a property it is worth checking whether it lies within one of the 1,997 designated disadvantaged areas. If it does the purchase is exempt from Stamp Duty Land Tax for a residential property worth less than £150,000, or for any value of non-residential property.
Qualify
for taper relief
Check the date you acquired the property and the proposed date
of completion of the sale contract very carefully. You need complete
years to qualify for taper relief so a single day out could mean
you lose a whole chunk of tax relief.
Separate
bank account?
It is advisable to have a separate bank account to record all
rental income received & expenditure incurred. This will
assist you in the event of an Inland Revenue investigation and
completion of your annual rental accounts and self-assessment
tax return.
Deposits from new tenants
Don't forget to exclude the deposits you receive from new tenants
when calculating your taxable rental income. Deposits are not
taxable unless they become non-returnable under the tenancy agreement.
Only include the retained deposit when it is used to cover the
costs it was designed to prevent, such as renewals, repairs or
legal fees.
Renovating a property?
If you are renovating a property to bring it back into use as
a home the vat payable on the material and labour costs can be
reduced to 5%. The building has to meet a number of qualify a
number of conditions for this reduced VAT so discuss the plans
with us first.
|
