FIVE TOP TIPS FOR CUTTING YOUR TAX BILL

1. Go abroad for five years: if you are out of the UK for five complete tax years and sell the properties while you are Overseas, the capital gains will not be taxable in the UK. They may, of course, be taxable in the country that you are living in, but the rate may be significantly lower than the UK’s 18-28%.

2. Get married. You can claim two lots of annual allowance, or put the property in your spouse’s name.

3. Be really, really pernickety with your administration. Whether it is offsetting losses from other asset sales a couple of years ago, or claiming capital expenditures during ownership of a property, you may need to prove your case to the taxman.

4. Improve the property by adding a conservatory or converting the loft. But be careful: refitting a kitchen or bathroom is unlikely to count.

5. Buy holiday homes, which qualify for faster taper relief – but may require more day-to-day work and a different long-term strategy.

sourced from Mortgage Express

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