When you sell your home, if it is the only property you own, it is unlikely you will pay any capital gains tax. This is because a relief called Private Residence Relief (PRR) is applied.
If you own a second property and that property is rented out, a relief known as ‘letting relief’ may be available on the second property. The impact of letting relief is to reduce the amount tax payable on the eventual sale of that second property.
Continue ReadingThe restrictions on residential property interest will soon start to apply. As the legislation introducing these changes is now fully in place, our latest blog post will illustrate to you how the restrictions will work and what to particularly watch out for.
Continue ReadingBuy to let landlords of UK residential properties have been bombarded with tax changes in the last year.
In the past, letting residential property (even by individuals) was treated as a ‘property business’ for the purposes of calculating the taxable profit. Therefore, on normal business tax rules, interest paid on a loan used to purchase a property which is let, was deducted from the rental income received in the property business. For individuals who are landlords, the Government has changed this longstanding rule.
Continue ReadingMel Hackney sets out the highlights of the forthcoming changes to the way property income is taxed.
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