Latest Property

Since April 2015 non-residents selling UK residential property have been required to report the disposals within a Non-resident Capital Gains Tax return within 30 days of the conveyance.  You can view HMRC’s guidance here The timeframe is very tight – some may think unreasonably so, especially since many individuals are unaware of this requirement until…

Buy-to-let Mortgages: Tax relief restrictions soon to commence. The Chartered Institute of Taxation (CIOT) issued a press release today reminding residential property landlords that the first phase of the restriction of tax relief for mortgage interest commences in April. The change means that finance costs (including mortgage interest) will no longer be deductible in full…

Making Tax Digital: or Making Tax Difficult? Our MTD team look at a general update on MTD, Landlords, Timelines and Deadlines, Third Party Data, Bridging the Digital Gap, Unincorporated Businesses and ‘are you ready?’: Full Newsletter Blog entry by: Catherine Hubbard.

MTD: Revenue hold firm. HMRC have published their long awaited response to the making tax digital (MTD) consultation documents.  In essence the original timeline as detailed in the consultation documents remains unchanged, with the first taxpayers being affected by MTD from April 2018. Therefore for those businesses with an accounting year end of 5 April and…

MTD: Merging with VAT returns. As part of Making Tax Digital for Business, those unincorporated businesses who are also VAT registered will have to submit their VAT data through a digital software package from April 2019, rather than by using HMRC’s online portal. This will hit those businesses who do not currently use an accounting…

DIY Builder VAT Reclaims:  Get the detail right. A recent tax tribunal case highlighted the point of completion of a new build project in relation to DIY builder VAT claims. It noted that it is not necessarily the date on the Certificate of Completion which represents a building project as being finished. The Certificate can…

The “Axe the Tenant Tax” Group is a crowd-funded coalition of individuals and organisations supported by Cherie Blair and representing over 150,000 landlords. The group are campaigning for a judicial review hearing of the legislation in the summer 2015 Finance Act that seeks to restrict tax relief for finance costs borne by residential landlords. In some cases, the workings of the legislation will result in landlords having to pay more tax than their rental profit.

Making Tax Digital: 6 tax returns required each year! HMRC’s 6 Making Tax Digital consultation documents have been open for review and comment for several weeks now. As time has passed, it has become ever more apparent that there are enormous changes ahead for all taxpayers affected; initially the self-employed and landlords. Further review of the documents…

Small Buy-to-let Landlords: HMRC offers simplified tax rules. HMRC’s 12-week consultation into Making Tax Digital (MTD) published 15th August focuses on one of the measures aimed at simplifying the tax rules for unincorporated property businesses, giving landlords the choice to use the simplified cash basis, currently only available to some unincorporated traders. Landlords with annual business income below £10,000 will not be required to keep their business records digitally or provide quarterly updates to HMRC, but they will still be able to use the optional cash basis. Through using the cash basis, the move towards quarterly updates required by MTD would become more straightforward, giving landlords additional flexibility.

Landlords: Get ready for submitting 4 tax returns a year? H M Revenue & Customs will be implementing ‘ Making Tax Digital’ over the coming few years. Their aim is for ‘most’ landlords to be reporting their income each quarter via their digital tax account rather than after the end of the tax year on a tax return.