Property Investment

If you're interested in reducing tax on your property investment/development activity you'll find plenty of opportunties in our articles and forums!

Property Investment How to generate a tax loss on properties without actually selling 06/01/2012 As you'd expect, property traders and investors can get tax relief for property losses when they sell. If they're traders they'd incur a trading loss and if investors they'd incur a capital loss. These losses can be offset against other income or capital gains dependent on the type of loss incurred. But what about if the property isn't sold? Is there any way that tax relief can be obtained for an 'unrealised' loss? . . . keep reading Tax relief for Middle Eastern investors in UK property using the UK-Saudi Arabia double tax treaty 29/12/2011 Many Middle Eastern investors look to invest in UK property, and with the current low prices it can represent a good buying opportunity for the savvy investor. In this article we look at the tax treatment of UK property investments using Ijara structures and how this has now changed due to the provisions in the new UK-Saudi Arabia double tax treaty. |image1| . . . keep reading Buying property tax efficiently whilst your children are studying 07/12/2011 The slump in property prices will have made many people consider whether buying property for their children to occupy whilst at university is cost effective. However, given the currently low prices, if you're looking at the long term with perhaps other family members occupying the property and also renting it out to third parties it can still be a worthwhile investment. In this article we look at structuring such a purchase tax efficiently . . . keep reading Tax implications of buying property with an overseas mortgage 16/11/2011 If you're considering buying overseas property, financing this with an overseas mortgage is a common strategy. What many investors don't consider though are the tax implications of this - some of which can be very costly to overlook. This article looks at the key UK tax implications of using an overseas mortgage to purchase overseas property. . . . keep reading How to reduce stamp duty by allocating part of the purchase price to furniture 11/11/2011 Reducing stamp duty on property purchases is difficult. This article looks at one of the key opportunities for reducing stamp duty by apportioning part of the purchase price to furniture or other chattels. . . . keep reading Make the most of the drop in property prices to restructure property investments 09/11/2011 If you have investment properties owned by a company you may be able to take advantage of the decrease in property prices to restructure the ownership and substantially reduce the ultimate capital gains tax charge on disposal.This article looks at the tax implications. . . . keep reading Using offshore company for UK property investment - USERNAME: Walmington Tax Question: My parents non UK resident and non UK domiciled. I am UK resident. We're thinking of setting up an offshore company for my parents and purchasing a UK property through it. Given I would be driving the property purchase and its subsequent rental management on behalf of my parents, would I face any UK taxation implications even though I am not an immediate and direct beneficiary? . . . keep reading Income tax deduction for interest on family loan - USERNAME: johnsmith99 Tax Question: A 50 pct tax payer is buying an investment property. He has a number of low tax rate relatives (including parents and minor son) who could lend funds for the purchase. Will interest on such a loan be allowed as a deduction against the rent? Are there any connected party rules on the interest rate to be aware of? Does there have to be a charge on the property or will a simple loan agreement do? Where are the rules to be found on hmrc website? Many thanks! . . . keep reading Reducing tax on property development by using a trust 23/09/2011 One possibility to reduce tax on property trading is by using a trust. The general idea would be that you could save the 40% or 50% income tax charge you'd be subject to if you did the development in your own name by using a trust. The trust could be subject to income tax at the basic rate of 20%. There could therefore be a significant tax saving. . . . keep reading Purchase of investment property tax efficiently - USERNAME: Casio Tax Question: PURCHASE OF INVESTMENT PROPERTY I am looking to purchase investment property @ £150k. I only have 50% the funds to acquire the property. I therefore have two options: 1. To borrow the remaining 50% of the funds required from my Ltd company (in which I own 100% shares) and then pay interest to the company at the beneficial rate of interest to avoid any benefit --in-kind issue. I do not wish to find external finance, e.g. bank. Or 2. To purchase the property jointly with my company (50:50). (a) Can you please advise on the above two options. (b) Can you please suggest any other alternative (c) Can you please consider tax implications of (a) and (b) and suggest which alternative may be better from tax perspective. . . . keep reading Tax Planning for property developers 14/09/2011 Property developers are subject to tax on any profits realised as income as opposed to capital. However there are some particular aspects of trading in property that make their tax treatment unique and it is these areas that should be given special consideration. . . . keep reading How to avoid being a property trader for income tax purposes 17/08/2011 Given the top rate of income tax is 50%, it's even more beneficial to avoid being classed as a property trader for tax purposes, and instead be classed as a property investor. The 28% rate of CGT will make it much more tax efficient for most developers. In this article we look at the different factors to take into account to ensure you're a property investor . . . keep reading Helping your children to buy their first property tax efficiently 01/08/2011 For a variety of reasons many adult children aren't able to get on the property ladder without some financial help from their parents. If you're considering ways to help your children buy their first home it's important that you consider the tax implications both for you and your children. In this article we look at ways to help your children purchase their first property tax efficiently . . . keep reading Selling property at a loss: Making the most of your property losses to reduce tax 16/05/2011 With the current financial crisis and the drop in property prices there may well be many property investors selling surplus property at a loss on the original purchase price. In this article we'll look at how losses on the sale of property are calculated, how to make the most of them and any special rules that apply to these losses. . . . keep reading Should property developers use a separate company for each development? 13/05/2011 Some of the big name property developers use separate companies for each property development. In this article we look at whether this is beneficial in terms of reducing your tax UK taxes. . . . keep reading Should I use the renewals basis or claim capital allowances to reduce tax on my property rentals? 04/05/2011 Anyone who lets residential property has three key options when it comes to claiming relief for capital expenditure incurred on let property. This article looks at the options available, how they apply and which is the preferred option for residential landlords as well as anyone providing furnished holiday accommodation. . . . keep reading Setting up your own property management company to reduce income tax 20/09/2010 In the past it used to be a pretty popular tax planning opportunity. You'd retain ownership of your rental properties in your own name and set up a property management company. The rates of corporation tax, income tax and CGT have changed in 2010 and beyond but it's still worth asking is the property management company a useful tax saving opportunity? . . . keep reading Tax relief for property investors on overseas interest and finance costs. If you're borrowing money from overseas to invest in property you need to assess firstly what level of tax deduction you'll be entitled to for the interest and secondly whether you'll be caught by the withholding tax rules. If you are caught by the withholding tax rules you'll also need to consider what options you have to avoid having to pay 20% of the interest to the UK taxman. This article tells you what you need to know to avoid UK withholding taxes on overseas interest. . . . keep reading Qualifying for rollover relief on capital gains on investment properties that are compulsory purchased 28/12/2009 It's well known there's a rollover relief that allows capital gains on business assets to be deferred when you spend the proceeds on other business assets. However, what's less well known is that there are provisions allowing capital gains on investment properties that are compulsory purchased to be deferred. This article looks in detail at this special form of rollover relief and how to ensure you meet the qualifying conditions . . . keep reading Maximising tax relief on the purchase of business premises 13/11/2009 Given the substantial costs in purchasing business property, maximising your tax relief for the expenditure you incur is essential. Following a request from a member in this article we look at maximising tax relief on the purchase of business property. . . . keep reading More property investment articles