The following individuals will typically come up against property tax issues:
- home owners
- builders & tradesmen
When we refer to Property Tax, we are referring to a Range of Taxes surrounding property transactions, being:
- stamp duty land tax
- capital gains tax
- CIS tax
- Income tax
- Corporation tax
- Inheritance tax
Questions an investor may be faced with are:
- What is the best structure to reduce tax on rental income?
- What can I claim as tax deductible expense?
- Am I an investor or am I classed as a trader/ developer?
- Do I get any allowance for the time I live in the property
- Should I take out a mortgage or not?
- Do I need to charge VAT on the rent?
Questions a builder, developer or tradesman may be faced with are:
Area of VAT:
- Is there an option to tax on this property & how do I get it amended?
- At what rate am I charging VAT? Zero, reduced rate or standard rate?
- What VAT can I reclaim?
- How is a partial exemption calculated?
Area of PAYE/ CIS:
- Are all the tradesmen caught by the CIS Scheme & have they been verified?
- Is the worker employed or self-employed?
- What structure would be best for me to trade as?
- What rate will my profit be taxed at?
The answers to all these questions will all depend on your personal circumstances and will need tailored advice.