The property allowance is essentially an additional personal allowance for property income. It allows individuals to enjoy property income of up to ÂŁ1,000 each tax year, free of tax and without needing to report it to HMRC. Where income from property exceeds ÂŁ1,000, the allowance can be deducted instead of actual expenses. However, there are […]
Utilising the property allowance Read More »
A landlord will need to consider whether it is better to pass on an investment property during their lifetime or on their death. Here, we look at the associated tax implications. On death Where a landlord dies, any investment properties they have will form part of their estate at death and, unless they are sheltered
Passing on the investment property Read More »
Landlords running an unincorporated property business can claim a tax reduction for interest and finance costs incurred in relation to residential lets (including holiday lets). The tax reduction is 20% of the lower of: The deduction cannot create a tax refund. If the interest and finance costs are higher than the business profits and/or the
How to claim relief for excess interest Read More »
Where a business is run through a personal or family company, the directors/shareholders will need to extract profits if they are to be used personally. There are various ways to do this, and popular options include paying a small salary and extracting additional profits as dividends. However, where the business is run from home or
Extracting profits as rent Read More »
Costs of working from home When an employee works from home, they may incur additional costs, such as higher gas and electricity bills. The tax system offers some help where the employer meets some or all of these additional costs. However, the relief previously available to employees who met these costs themselves will be withdrawn
Costs of working from home Read More »
VAT is often thought of as a relatively simple tax; if a business is VAT registered, 20% VAT is usually charged. However, in practice, the VAT system is more complicated. What is being supplied, who is doing the supplying/buying, where the supply takes place and whether particular conditions and evidence requirements are met determines whether
Ensuring VAT is charged correctly Read More »
By now the first quarter’s Making Tax Digital (MTD) submissions should have been made. However, by 12 August, just over 436,000 of the estimated 864,000 taxpayers affected had submitted their first quarterly update. Many taxpayers have questioned why the new system has been introduced, with some wondering whether it is simply a precursor to quarterly
April 2029 – Taxpayers’ payment dates may be changing Read More »
As for unincorporated trading businesses, the cash basis is the default basis for the preparation of accounts for landlords running an unincorporated property business. However, unlike traders, landlords can only use the cash basis if their rental receipts calculated under the cash basis are ÂŁ150,000 or less for the tax year. Landlords who are not
Cash basis for landlords Read More »
The Championship is the most exciting league in football. Its finances tell a very different story. Leonard Curtis has just published its first Football Finance Report on the EFL Championship, and the numbers are striking: 📉 Loss-making, every year. The league failed to post a combined pre-tax profit in any of the last ten seasons.
 The Leonard Curtis Football Finance Report 2026. Read More »
Not all taxpayers owe money – sometimes they are due a repayment. This may be for a number of reasons, and the method by which that repayment is obtained varies depending on which type of tax the repayment relates to. The rules also differ depending on whether the repayment arises from an amended return, a claim
Do deadlines matter for tax refunds? Read More »