Property Tax Services

If you have any concerns and questions regarding property tax, our company also offers property tax advice that would be able to help make sure that you would only be paying taxes associated with your property which you are legally required to.

Property tax is tax that is imposed by municipalities on the owners of real property which are on their jurisdiction. It generally depends on the value of the property being taxed. Here are some basic information and tips about property tax.

1. If you would be selling your family home, you need not pay any capital gains tax or CGT provided that you used it as your private residence for the entire time period of ownership.

2. You would be charged capital gains tax, however, if you made a profit from selling or disposing your assets. Though there is tax relief for your main residence, other properties that you would be buying would be subject to CGT on any profit made on the sale. This would apply to all kinds of rental properties and holiday homes that you and your family use.

3. If you own and use more than one property in the UK personally, then for tax purposes, you can elect which property should be considered as your main residence. For this, we can inform you about all the implications of making this election and the conditions that need to be met, as well as help you in deciding whether it would be beneficial for you based on your personal circumstances.

4. If you have any properties that you are renting out, you would be required to pay income tax based on the rents that you have charged during the tax year minus allowable expenses and charges including repairs, mortgages or loan interest, furniture replacement and an annual wear and tear allowance of 10%.

5. Presently, if you are renting property which can qualify as a furnished holiday letting, or any property which is let for a minimum of 70 days and is available to be let for at least 140 days in a tax year, you would be able to qualify for additional tax benefits, provided that there is no single letting which exceeds 31 days. Furnished holidays are different from residential and commercial lettings in that they have trading principles which are applied to them, allowing you to take advantage of tax relief for any loss you incur for renting out the property and on any profit that you would be making when you sell it.

6. If you have rooms in your own house that you are letting, then you would not have to pay any tax as long as the total rental payments charged are less than £4,250 per tax year.

Contact us today so we can provide you with valuable information and advice on all tax aspects of letting, buying and selling property. We have fully qualified accountants on board who can offer guidance on all of these as well as on upcoming changes on property tax laws and how they can affect you.