IHT also applies to any gifts made within seven years prior to death, although there is a tapering of the IHT rate. If an individual lets UK residential property they are subject to income tax at their marginal tax rates, ie up to 45% on the rental profit, regardless of their UK residence status.
These are outside the scope of this factsheet.
Hampshire Employers can give employees non-cash benefits as part of their remuneration.
The government is consulting on the detail of the changes, and, as part of this exercise, is also looking at whether the ATED-related CGT rules can be simplified. If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or customerservice@taxinnovations.com. Gains on commercial property and indirect interests in all types of property will be rebased to April 2019, so that only the element of gain accruing from that date is taxable.
Where the property was purchased after April 2015, the original purchase price can be rebased to April 2019.
Note that, where a non-resident company is in receipt of UK rental income in the 2019/20 tax year and incurs a gain on the sale of a UK property in that same tax year, it would seem that both an income tax return and a CT return must be filed for that one year, as companies will straddle both tax systems.
We have set out below a brief overview of the current position and the key changes; however, we will be happy to discuss these with you in more detail as to their impact on your particular circumstances.
If a residential property is owned by a “non-natural person”, the tax will only apply where the residential property in question was worth more then £2 million on 1 April 2012, or the date of acquisition if later. A UK resident company is subject to corporation tax on net rental profits (19%, reducing to 17% in 2020). Currently, companies owning residential properties are entitled to the full amount of mortgage interest relief. (5) The following table gives the annual chargeable amount for a single-dwelling interest (based on the taxable value the interest has on the day mentioned in subsection (2) or (3)). On purchase of the property in the UK, the buyer and seller must enter into a S198 election to agree the value of any fixtures and fittings for capital allowances contained within the building.
If you are an overseas investor, it is only your UK income that will determine the rate of tax payable. (6) The relevant fraction … owned by a registered provider of social housing.