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Michael Sohor & Co is now known as Tamen Accountants. This is a name change only - we are the same dedicated team, and look forward to serving our valued clients for many years to come.

If you sell a residential property that isn’t your main home on or after 27 October 2021, you'll need to report the sale to HMRC, and pay the tax owed within 60 days of the completion of the sale to avoid any penalties.

You might be able to claim capital allowances on what is known as the “integral features” of the property. Generally, these are the hot and cold water systems and main wiring within the property. Other items are rarely seen in practice. This is a complex area and advice must be tailored to your situation.

You have 2 years from the date of acquisition of a second home to nominate it is your principle private residence (PPR). Currently the last 9 months of your ownership of a property which you have lived in as your “PPR” are exempt from Capital Gains Tax. Lettings relief is all but gone now, with only periods where you co-habited with your tenant qualifying for lettings relief.

Yes you do, but there may be options to reduce this substantially. See the next FAQ for more info.

It depends on the type of car you are considering. Generally, cars which run on petrol or diesel alone are not worth running though a company; the benefit in kind (BIK) tax is too expensive. Hybrid cars and pure electric cars are very tax-efficient, and therefore might be worth putting though a company. However to benefit from the most generous tax deductions in your company the car must be new and unused and 100% electric. This means a significant financial commitment.

If you are happy to leave the rental income generated in the company then you might consider this. Otherwise, it doesn’t make sense because rental profits will first be subject to Corporation Tax at 19% then the income must be extracted via salary and/or dividends, which are subject to further tax. Generally a specialist property investment company makes sense once the investor starts to accumulate more than 5 or 6 properties. Note, if you want to transfer an existing property portfolio to a limited company, you are effectively selling the properties which may generate a Capital Gains Tax liability, and possibly Stamp Duty Land Tax.

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Deadlines don't have to be taxing

Our tax experts we can make sure all your tax returns are filled out and submitted in the most efficient way. Get in touch to find out more about our tax return services.