How to Avoid Property Tax

Contents

Introduction
Scope of this Guide
Chapter 1 What is Property Tax?

1.1 Knowing Your Enemy
1.2 What Taxes Face a Property Investor?
1.3 Which Taxes Are Most Important?
1.4 How Does Property Tax Compare with Tax on Other Types of Income?
1.5 What About Capital Taxes?
1.6 Dealing with the Inland Revenue
1.7 Changes to the UK Tax Authorities

Chapter 2 What Kind of Property Investor Are You?

2.1 Introduction
2.2 Does It Matter What Kind Of Property You Invest In?
2.3 Property Investment (or Property Letting)
2.4 Property Development
2.5 Property Trading
2.6 Property Management
2.7 Casual Property Income
2.8 Advantages and Disadvantages of Investment or Trading
2.9 The Boundary Between Investment and Trading
2.10 'Mixed' Property Businesses
2.11 Other Property-Based Trades
2.12 Husbands, Wives and Civil Partners

Chapter 3 How to Avoid Income Tax

3.1 Introduction to Income Tax
3.2 Basic Principles of Income Tax
3.3 Income Tax Rates
3.4 Calculating the Income Tax Due
3.5 Tax Returns
3.6 Non-Residents, etc

Chapter 4 How to Avoid Income Tax on a Property Investment Business

4.1 The Taxation of Rental Income Generally
4.2 Deductible Expenditure
4.3 Interest and Other Finance Costs
4.4 Legal and Professional Fees
4.5 Repairs and Maintenance
4.6 Landlord's Administrative Expenditure
4.7 Capital Allowances
4.8 Furnished Lettings
4.9 Furnished Holiday Lettings
4.10 Rent-a-Room Relief
4.11 Rental Losses
4.12 Other Property Investment Income
4.13 Lease Premiums
4.14 Overseas Lettings
4.15 Non-Commercial Lettings

Chapter 5 How to Avoid Tax on a Property Trade

5.1 The Taxation of Property Trading Income
5.2 Properties as Trading Stock
5.3 Accounting Date
5.4 National Insurance Contributions
5.5 Trading Deductions: General
5.6 Trading Deductions: Specific Areas
5.7 Capital Allowances for Property Trades
5.8 Property Management Trades

Chapter 6 How to Avoid Capital Gains Tax

6.1 The Importance of Capital Gains Tax
6.2 The Development of Capital Gains Tax
6.3 Who Pays Capital Gains Tax?
6.4 What is a Capital Gain?
6.5 The Amount of the Gain
6.6 Proceeds
6.7 Base Cost
6.8 Base Cost – Special Situations
6.9 Indexation Relief
6.10 Other Reliefs
6.11 The Principal Private Residence Exemption
6.12 Private Letting Relief
6.13 The Impact of other reliefs
6.14 Gardens and Grounds
6.15 Renovations
6.16 Building Your Own Home
6.17 Temporary Absences
6.18 Job-Related Accommodation
6.19 Dependent Relatives
6.20 Properties Held in Trust
6.21 Second Homes
6.22 Letting Out Part of Your Home
6.23 Conversions
6.24 Using Part Of Your Home For Business Purposes
6.25 Taper Relief – Introduction
6.26 Non-Business Asset Taper Relief
6.27 Business Asset Taper Relief Principles
6.28 Rates of Business Asset Taper Relief
6.29 'Hybrid' Taper Relief
6.30 The Annual Exemption
6.31 The Amount of Tax Payable
6.32 When is Capital Gains Tax Payable?
6.33 What Must I Report to the Inland Revenue?
6.34 Jointly Held Assets
6.35 Capital Losses
6.36 Leases

Chapter 7 Other Taxes to Watch Out For

7.1 Stamp Duty – Introduction
7.2 Stamp Duty Land Tax
7.3 Stamp Duty on Shares
7.4 Inheritance Tax
7.5 VAT
7.6 National Insurance Contributions

Chapter 8 Advanced Tax Planning

8.1 Introduction to Tax Planning
8.2 Planning For The Future
8.3 The Benefits Of Joint Ownership
8.4 Using Your Spouse Or Civil Partner
8.5 Have Your Cake and Eat it
8.6 Marriage, Divorce and Civil Partnerships
8.7 Climbing the Ladder
8.8 General Elections
8.9 Something in the Garden
8.10 Student Loans
8.11 Multiple Exemptions
8.12 Reinvestment Reliefs
8.13 Emigration
8.14 Pension Relief
8.15 Flat Conversion Allowances
8.16 The Tender Trap: The Benefits and Pitfalls of Re-Mortgaging
8.17 Non-Domiciled Investors
8.18 Using Lease Premiums To Generate Tax-Free Receipts
8.19 Commercial Developments In Disadvantaged Areas
8.20 Rollover Relief
8.21 Year End Tax Planning
8.22 Bed And Breakfasting For Property Investors

Chapter 9 Planning With More Complex Structures

9.1 Using a Property Company to Save Tax
9.2 Partnerships
9.3 Property Syndicates and Special Purpose Vehicles
9.4 Pension Schemes
9.5 Other Ways To Invest In Property

Appendix A Tax Rates and Allowances
Appendix B Indexation Relief Rates
Appendix C The European Union & The European Economic Area
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