Property tax update

Business Rates Business rates became due on most vacant business property from 1 April 2008 when previously such properties were exempt from rates. In last year’s Pre Budget report the Chancellor announced an exemption from business rates for empty properties which had a rateable value of less than £15,000, but only for the 2009/10 financial…

Business rates – new rateable values

It is very important to check the detail of the new valuation to make sure that the rateable value applied to your property is correct. The rateable value is determined by a number of factors primarily the open market rental value on the valuation date. The valuation date for the 2010 changes is 1 April 2008. We are aware of cases where business rates have been reduced, following appeals on the basis that rental values have fallen.

Furnished Holiday Let Property – abolished

The EU seems to have caused a problem for the Chancellor. As a direct result of EU rulings the UK has been compelled to extend the various tax advantages of ‘Furnished Holiday Lettings’ status to properties located within the European Economic Area (EEA) – as long as they meet the required qualifying criteria. Clearly the…

Selling property abroad

Sterling has depreciated considerably against the Euro in the last year. Whilst this is of great interest to other Euro zone residents, who can buy property in the UK at much lower Euro cost, the opposite applies to UK residents who have purchased property elsewhere in the Euro zone. For instance a property in Spain…

Letting your home

There is no tax relief on purchasing your own home. Where possible, business owners should try to structure their affairs so that the business has borrowings and minimise the mortgage for the home. The mortgage is a major outgoing for most people, and both interest and capital repayments have to be funded out of our…

Restriction of PPR

Restriction of PPR If part of your home is let it will not affect your exemption from capital gains tax, providing the ‘rent a room’ scheme applies. HMRC publication IR87 page 9 states: “The private residence relief is not affected if you have a lodger who is treated as a member of your family, sharing…