Tax And Property

The tax implications regarding property is by far the most complicated aspect of the whole subject, in my opinion. I’m not talking about stamp duty; I’m talking about the tax benefits of starting up a property related company to reap the rewards of discounted dividend tax. I’m also talking about how much tax you have to pay when you walk away with profit- yes; profit is declared as income tax, unfortunately.

I’d like to strongly advise that I’m not a tax expert, so I wouldn’t take anything in this section as gospel. All the articles are just guidelines to help assist. For the real facts, you will need the wise words of an experienced accountant that has dealt with property related acquisitions before.

All articles in the " Tax And Property" section

Which Council Tax Band Is My House In?

26 Dec 2008 / Tax And Property / 2 Comments

I got an email earlier from someone asking me what Council Tax Band their property is in. I imagine a lot of people have no idea what council tax band they’re in. I bet there’s even a few lost souls out there that didn’t even know there were different bands. Why should I care which [...]

Capital Transaction Vs Trading transaction

03 Dec 2007 / Tax And Property / 0 Comments

Buying property seems to be the easy step when it comes to property investment, and relatively speaking, so is selling property. However, it goes without saying that you don’t want your profits eaten up by the taxman, and that’s when selling property can be a little bit complicated. In principle, I always recommend getting a [...]

Sell A Property And Benefit From Taper Relief

26 Nov 2007 / Tax And Property / 5 Comments

27/11/2007 EDIT: From the 6th of April 2008 Taper relief will be abolished. Chancellor Alastair Darling announced that taper relief will be abolished, and will be replaced by a flat 18% tax rate. Following the abolition of taper relief, when any such loan notes are redeemed or otherwise disposed of after April 5, no taper relief will be [...]

Using A Property Company To Save On Tax

25 Nov 2007 / Tax And Property / 7 Comments

As far as I’m concerned, the biggest drawback to buy to let investors is the huge tax implications. You could potentially end up paying a massive 40% of your profits because of capital net gains. That’s a lot of lost profit (politicians may disagree- but who cares?). There are many reliefs and deductions you can [...]

Tax On Selling Property

19 Sep 2007 / Tax And Property / 2 Comments

Before I begin, let me make the primary message quick and painful- YES, you may have to make tax payments when selling your own property. Avoiding costs and expenditures when dealing with property is like trying to avoid bloodshed when going into battle with a hungry lion. Unfortunately, I imagine the pain of feeling an [...]

How Much Stamp Duty Do I Have To pay?

15 Jan 2007 / Tax And Property / 2 Comments

The amount of Stamp Duty you pay depends on the purchase price of the property. The rates can change- Chancellor Gordon Brown increased the rates 4 times in 4 years. As it stands, these are the current rates: Stamp Duty for UK Homes: Up to £175,000 – You don’t have to pay any stamp duty [...]

What Is Stamp Duty?

15 Jan 2007 / Tax And Property / 0 Comments

Introduction to what stamp duty is: Stamp Duty is the tax you pay when purchasing property. It is a percentage paid on the purchase of a home or non-residential property, graded into bands. Your conveyancing solicitor will typically handle this fee; it will be added onto your solicitor’s fee, which will then be accordingly directed [...]

Stamp Duty Land Tax (SDLT) Form

09 Dec 2006 / Tax And Property / 6 Comments

When I got my initial quote from my conveyancing solicitor, they offered me a lot of extra optional services for extra fees. Being naive, I declined most of the additional services because obviously I want to keep all fees to a minimal. However, I did make an exception for the “no competition, no fee”, insurance; [...]