The Government’s tax changes for UK landlords, announced in this summer’s Budget, will significantly eat into landlords’ profits and, in many cases, will wipe them out completely.
As announced in the 2013 Autumn Statement, capital gains tax (CGT) is to apply to non-residents disposing of UK residential property, on gains arising on disposals after 5 April 2015.
Before then CGT was not applied to non residents (other than those carrying on a trade in the UK and, since April 2013, on companies subject to the 'annual tax on enveloped dwellings' (ATED)
One of the most often used and valuable of the Capital Gains Tax (CGT) exemptions covers the sale of the family home. CGT is a tax on the profit made from selling certain assets such as property, shares or other investment e.g. antiques and fine art. There are a number of exemptions available which can reduce or remove a taxpayer's liability to CGT.
In general there is no CGT charge on a property which has been used as the main family residence. An investment property which has never been used will not qualify. This relief from CGT is commonly known as Private Residence Relief....
As we continue into 2014, many businesses and their teams are taking a step back, looking at the business, considering how the market will develop over the next 12 months and creating plans to grow the firm and take advantage of changes in the business environment.
A typical approach to planning suggests multiplying last year's financial results by an acceptable growth factor. Industry standards vary, often from 5% to 25%. Add to that number any enhancements to your product or service lines plus solutions to key problems you've been meaning to address, and that will essentially give you an outline of a business plan....
HRMC have announced that second home owners are to be the latest group to be targeted for tax evasion. A new campaign known as the Property Sales Campaign has been launched. The campaign is aimed at those selling homes in the UK or abroad where Capital Gains Tax should have been paid on any profits made. There is usually an exemption from Capital Gains Tax on the sale of a property which has been used as the main family residence known as Private Residence Relief. However, the sale of a second home such as a holiday home or a property that was bought as an investment and rented out either in the UK or overseas may be subject to Capital Gains Tax.