Issue 8: Property Matters Newsletter

What To Expect In Issue 8 of Our Property Matters Newsletter

HMRC Nudge Letters

In this edition we are looking to explore the approach that HMRC are now taking in relation to closing the reportedly £40 billion tax gap, not only through the use of employing more compliance workers, making greater use of AI, but also using the “nudge” effect by writing to many suggesting that their tax affairs are perhaps not as correct as they should be.

At times, this nudge is borne from information provided from third parties, so careful consideration should be given to the matter if you receive an HMRC brown envelope!

The End Of Leaseholds

We then move onto the subject of a recent Government white paper and the suggestion of ending leaseholds, and the implications that may arise from this proposal. It would certainly change the ownership of property, and the rights afforded to those that rent.

Making Tax Digital for Income tax

Then with the start date for Making Tax Digital for Income Tax fast approaching, we provide you with a reminder of the conditions and what is going to be expected. This has been an extremely hot topic over the last 12 months and will continue to be so over the next 9 months, so watch out for more information on this.

Airbnb and the End of Furnished Holiday Lets

Finally, we take a close look at the issues surrounding the abolition of the Furnished Holiday Let regime, and more specifically the rise of the popularity of Airbnb rentals and the implications arising for tax purposes, which will not only have an immediate impact for Income Tax purposes, but also the longer term issues in relation to the method of ownership and how to mitigate the tax exposure.

Other areas which we have recently been working on include the VAT treatment of commercial and mixed property and the option to tax such, which is a complex issue and one that is generally an historical one, requiring a great deal of evidence to be held. It is therefore very important to ensure that any options previously made remain relevant, and are held on file with easy access. Such matters then have an effect upon the value of Stamp Duty Land Tax if and when the property is purchased by another.

Click here to read Issue 8 of our Property Matters Newsletter

Get In Touch

As ever, if you have any queries regarding any of the topics discussed in Issue 8 of our Property Matters newsletter or your specific property circumstances, please do get in touch with your usual Whitings LLP contact or your local Whitings LLP office today.

Disclaimer - All information in this post was correct at time of writing.