This title leads the reader through the lifecycle of property ownership, from acquisition to eventual disposal.
At each stage, the tax issues are clearly explained and illustrated, with worked examples throughout. The book will be invaluable for tax advisers with property-owning clients (and no doubt for many property owners themselves).
The various tax topics are addressed in depth, and are always fully rooted in the appropriate legislation and relevant case law. The writing style is accessible, and the emphasis throughout is on addressing the real tax issues that owners and their advisers have to grapple with.
Difficult issues, such as the complex tax rules for lease premiums and the sometimes grey areas around the division between revenue and capital expenditure, are addressed in depth.
“It sets out the tax issues to be considered at each stage of investment … All serious property investors, and their financial advisers and accountants, should read this book to understand the tax implications of investing in property.” – from the foreword by Rebecca Cave FCA, MBA, CTA
Contents (in brief)
Introduction and overview
Start-up issues – acquisition of rental assets
Trading or investing?
VAT for landlords
Operational phase – running the property portfolio
Taxation of rental profits
Maintaining the property – the tax issues
The lease premium rules
The taxation of reverse premiums
The tax treatment of property losses
ATED for landlords
Re-structuring and exit issues
Re-structuring and exit issues for landlord and tenant
Selling up – re-structuring and exit issues for the landlord.
New for this 2023-24 edition
reducing annual CGT exemption;
comparison re individual and corporate investors updated re new CT rates;
updated SDLT/LBTT/LTT rates for residential property in England, Wales and Scotland;
updated SDLT rates re grant of lease in England and Wales;
SDLT reliefs for freeports and investment zones;
clarification and additional case law reference re VAT rules relating to transfer of business as a going concern;
change to income tax additional rate starting level for individuals;
change to main corporation tax rate;
disallowances of management expenses as capital expenditure;
interest relief restrictions on residential property – commentary and examples updated;
detailed update to commentary on first-year allowances, including full expensing;
annual investment allowances updated with new thresholds (including detailed new examples);
updated commentary on SBAs for freeports and investment zones;
commentary re landlord contributions updated and expanded;
construction industry – reverse premiums: commentary updated and expanded;
ATED valuation dates – commentary expanded and updated;
ATED relief re Homes for Ukraine sponsorship scheme;