Records in this category
- Taxation of Property Income - I have recently puchased a second home and have let it to tenants; do I need to declare my rental income and what might I have to pay?
- Tax Deductions - What deductions and expenses can I claim against my rental income?
- Rent a Room Scheme - I intend to let a room in my home to a lodger. Do I have to declare the income I receive to HMRC and if so how will this be taxed?
- How long do I need to keep my accounts, invoices and tax records as a property landlord?
- I understand that Capital Gains Tax (CGT) on property sales has undergone some changes since April 6, 2008. How do I calculate my CGT liability after this date?
- Should I buy residential buy-to-lets in my own name or form a company?
- Council Tax - I have let my property for less than 6 months and now the council are telling me that I, as landlord, am liable for the Council Tax, not the tenant. Can this be right? I would not have let for less than 6 months if I had known this.
- Non-Resident Tenant - I let my property for 6 months on an AST but my tenant has not entered the property. The tenant is paying rent but how do I stand with my tenant, Council Tax, utilities bills and the Tenancy Deposit Scheme?
- I want to gift my property to my children but I need to keep living in my home. I would also consider gifting some investment property, but would still need to receive the rental income. Is it possible to do this without a massive tax bill? Would I need to set up a trust?
I want to gift my property to my children but I need to keep living in my home. I would also consider gifting some investment property, but would still need to receive the rental income. Is it possible to do this without a massive tax bill? Would I need to set up a trust?
This is worth considering when your total estate exceeds the current Inheritance Tax allowances, either for you individually or the joint combined allowance with your spouse.
This sort of long-term tax saving strategy needs very careful consideration and planning with expert help - it is not as simple as it at first may seem.
First, once you have made the gift you cannot change your mind - you cannot go back.
Reservation of Benefit rules introduced a few years ago mean that if you gift your residence and continue to receive the benefit of the asset by living in it, then you will be taxed. An alternative is to pay your children a market rent whilst you enjoy the benefit. This however, could have the effect of creating a tax issue for your children.
An alternative would be to gift the property and live with your children or rent elsewhere.
Setting up a trust can work but can be incredibly complicated and expensive. Also, as the Treasurey becomes more and more persistent in closing inheritance and other tax loopholes, these expensive measures can become ineffective over time.
Also, you should bear in mind that gifts of assets such as property can be clawed back by a local council were you to be placed in a council run nursing home at some point in the future.
In the case of investment property, you cannot gift the asset and still enjoy the income yourself.
Before you make any moves, consult an experienced taxation or trust specialist accountant, or a good property or probate solicitor.
©LandlordZONE All Rights Reserved - never rely totally on these standard answers which apply primarily to England & Wales. Before taking action or not, always do your own research and/or seek professional advice with the full facts of the case and all documents to hand.
- Joint & Several Liability - I have signed a tenancy agreement for my student house (sharing with 4 others) and the agreement contains the term "Joint and Several Liability" What does this mean?
- Squatter's Rights - Someone has occupied my property for some time without my permission. Can they claim good title through Squatter's Rights (adverse possession) ?
- Leaving Early - I signed a new tenancy agreement last month and now I find I need to leave. My landlord says I owe him all of the rent - is he correct? I intend to drop the keys through the letter box and walk away.
- Re-development Ground - Section 25 Notice. My landlord has served notice citing the re-development ground as the reason for ending my commercial tenancy, what should I do?
- Accelerated Possession Procedure - I'm a landlord with a tenant not paying rent. The tenancy is now periodic (the fixed term ended 6 weeks ago) so can I quickly regain possession using the accelerated possession process.
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