Tag Archives: Tax

Nearly half of landlords hit by tax change

The National Landlords’ Association (NLA) has revealed that 47% of landlords will be hit when the annual wear and tear allowance is removed from next year. The move was announced by the Chancellor, George Osborne, in his latest Budget for the allowance to be removed and instead landlords will have to claim for the actual costs they have incurred when replacing furnishings. Currently landlords can claim 10% of their rental income against tax for ‘wear and tear’ regardless of whether they actually spent any money on replacement items. The new rules cover furniture, kitchenware and appliances provided for tenants which will also include fridges, televisions, carpets, curtains and crockery among other items. The head of policy at the NLA, Chris Norris, said: “We understand landlords’ frustration who let exclusively furnished properties since the allowance removal will represent a reduction in the relief claimed. “However, the change will be welcome for those landlords who let a mixed portfolio of part furnished or unfurnished properties since they will be able to deduct their legitimate expenses.” NLA welcomes new tax proposals for landlords   He added that the NLA is welcoming the new tax proposals because it brings about a fairer system for […]

HMRC wins buy to let CGT relief case

The tax man is taking a tough line on property investors claiming capital gains tax relief on second homes and buy to lets.

Stealth Budget scraps another property tax relief

Landlords have lost a back-door stamp duty relief worth around £1,500 on buy to let property in disadvantaged areas in Chancellor George Osborne’s Budget 2013.

Tax man is tracking income shifting couples

Married couples who have joint ownership of a buy-to-let property are urged to consider altering the split of rental profits in order to lower their tax bill.

Tax man in unfair crackdown on landlords

The tax man is cutting corners in a crackdown on landlords and unfairly pursuing those who have properly declared their tax, claims an accountant.

Judges reject home office tax claim

A new ruling by judges could change how landlords claim mileage expenses when travelling between their home and rental properties.

Landlords paying salaries and wages

Salaries and wages are costs for a private rental property rental business just like any other business – but don’t forget some key rules.

Lawyers crack down on warring buy to let owners

Warring couples arguing over who owns buy to let properties in divorce settlements are causing headaches for solicitors and the Land Registry.

Property tax cheats banned as directors

Property developers who tried to dodge paying £500,000 in corporation tax by placing their firm in liquidation without settling the debt have been banned from acting as directors for four years by The Insolvency Service. Walid Wasfi Wasif Musmar, 38, and Antoni Fields , 53, of Barnet, London, ran Oberon Properties Ltd, which sold a property in May 2007 for just over £3.5 million and should have paid £500,000 tax on the profits in August 2008. Instead, both paid £3,727,845, out of Oberon – including loans totalling £640,000 – to another company they also ran as directors, but failed to pay any corporation tax. Following an investigation by the Insolvency Service, Fields gave an undertaking not to act as a company director for four years from November 16, 2010. Musmar’s four-year ban starts on December 14, 2012, following an order made by a judge at a hearing in the High Court, London. Oberon went into liquidation in December 2008 owing £535,563 corporation tax. Mark Bruce, a Chief Examiner at The Insolvency Service said: “Directors who seek an unfair advantage by not paying tax should not expect to get away with it. This conduct harms commercial confidence and the UK’s reputation […]

Mansion tax door closed for good

The mansion tax and any similar valuation-based property taxed has been consigned to the Whitehall dustbin for good, said Chancellor George Osborne in his Autumn Statement.