Property Tax Seminar

On 18 February RRL hosted a property tax seminar at Scorrier House which was incredibly well attended by clients and representatives from professional services.  A whole host of aspects were covered in the short, but detailed morning event and a few key points are highlighted below:-

  • Watch out for property dealing and property development if not carried out in a limited company;
  • For property investment, consider incorporation if owners are higher-rate tax payers;
  • Give careful thought to cash extraction methods for limited companies – especially corporate pension contributions;
  • Always consider structuring where carrying out a number of projects, and where profits from one project will be invested in another;
  • Watch out for residential property ownership in a limited company if not being used for a business – always consider ATED;
  • Always consider capital allowances on transactions involving non-residential property, or residential property that has been, or will be, holiday let;
  • Always check the availability of capital gains entrepreneurs’ relief on relevant sales of assets;
  • Keep up to date and watch out for changes announced in the Budget (looks like it will now go ahead on 11 March 2020 per a tweet from Rishi Sunak following the seminar);
  • Always consider principal private residence relief where the main home is being sold, especially if a sizeable plot;
  • Be aware of the capital gains tax changes to principal private residence relief and letting relief being introduced on 6 April 2020 – seek advice as to whether planning can be carried out to mitigate the impact;
  • Watch the new 30 day capital gains tax rules for returns and payments coming in from 6 April 2020;
  • Consider VAT on every property transaction or build/development;
  • Consider SDLT on every property transaction – have all reliefs been claimed? Is the property definitely all residential property?
  • Property owners should always consider inheritance tax – what is their exposure? Can this be mitigated through planning?
  • Watch out for: investments being held within trading companies; investments being held in holding/parent companies; minority share holdings being owned by trading companies or trading groups;
  • Watch out for inheritance tax changes in the Budget;
  • Make sure property owners have up-to-date wills and powers of attorney in place.

If you would like to discuss any aspects of property tax, please contact the tax team on 01872 276116 or email steve.maggs@rrlcornwall.co.uk