Melissa Malins and Philip Spencer explain how to mitigate tax liabilities on UK property purchases
Increases in rent yields combined with reductions in bank interest rates have led to a higher amount of income potentially exposed to tax. In view of this the post-recession period should lead to a renewed focus on tax allowances for property expenditure as a way to bridge the gap between taxable income and outgoings.
The capital allowance regime does over time provide for 100% relief of qualifying capital expenditure. It is therefore worth identifying potential claims and keeping the availability of allowances high on the agenda when considering property acquisitions.
There are several rates on the various allowances available. Plant and machinery attracts a writing-down allowance of 20% per annum (decreasing to 18% from April 2012). Long life assets (broadly assets which have a useful economic life of...
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Melissa Malins and Philip Spencer explain how to mitigate tax liabilities on UK property purchases
Increases in rent yields combined with reductions in bank interest rates have led to a higher amount of income potentially exposed to tax. In view of this the post-recession period should lead to a renewed focus on tax allowances for property expenditure as a way to bridge the gap between taxable income and outgoings.
The capital allowance regime does over time provide for 100% relief of qualifying capital expenditure. It is therefore worth identifying potential claims and keeping the availability of allowances high on the agenda when considering property acquisitions.
There are several rates on the various allowances available. Plant and machinery attracts a writing-down allowance of 20% per annum (decreasing to 18% from April 2012). Long life assets (broadly assets which have a useful economic life of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
