Tax Services for Property Owners with Two or More Properties
Tax services provided by us will make it easier for you, whether you’re just starting to build a portfolio or well on your way to establishing a substantial real estate business.
When it's time to commit to property tax services...
We provide property owners with multiple flats or houses…
- A simple method to stay ahead with taxes
As you acquire additional properties, the complexity of your tax returns increases. However, entrusting us with your tax returns promptly resolves this issue.
- Transform your property into a profitable venture
When your property evolves beyond a side gig and resembles a legitimate business, it’s essential to make strategic decisions to sidestep tax pitfalls, capitalize on allowances, and seize every tax benefit you qualify for. Drawing upon our extensive experience collaborating with countless property owners, our tax planning guidance will not only reduce your tax liability but also increase your financial gains.
- Assistance for Expanding Your Portfolio
If you’re looking to expand your property portfolio, we can offer guidance on sourcing financing options for your investment and structuring your property business as your income grows significantly.
Frequently Asked questions
This is a common and important question we often receive. When you acquire a property and then proceed with renovation work, the tax treatment of expenses like mortgage interest, utility bills, insurance, etc., is generally allowable. However, the situation regarding the tax treatment of renovation costs before letting the property is more intricate. It primarily hinges on the property's condition at the time of purchase.
HMRC's standpoint is that if you purchased a dilapidated property at a lower initial cost, any renovation work conducted could be seen as capital improvements. Consequently, these expenses may not be eligible to be offset against rental income. Instead, they should be incorporated into the property's overall cost.
This area can be quite convoluted, and the outcome depends on various factors. Feel free to reach out to us, and we will provide you with guidance tailored to your specific circumstances.
Exploring Ownership Options and Reducing Capital Gains Tax with Property Tax Services
In certain situations, yes. Ownership can vary, and before you consider proceeding with this option, it would be prudent to take the following into account:
Different Types of Ownership for Individuals (England and Wales Only)
Sole ownership:
In this case, a property is registered in the name of one individual, and both income and capital gains are subject to taxation solely on that individual. It is not possible to share income and gains with a spouse or civil partner for tax purposes.
Joint ownership (Joint tenants):
With joint ownership, the entire property is owned collectively, and if one owner passes away, the property automatically transfers to the surviving owners. Ownership cannot be bequeathed in a will until the last surviving owner becomes the sole proprietor. Since all owners are entitled to an equal share of income and capital gains, they are distributed equally, and no option exists for a different distribution of income. Therefore, when purchasing a property with friends in joint names, it's essential to confirm with your solicitor that you have common ownership as tenants in common, as outlined below.
Common ownership (Tenants in common):
In this scenario, a portion of the property is effectively owned by an individual, either in equal or different proportions. If one of the tenants passes away, their share becomes part of their estate and is distributed according to their will or the rules of intestacy. If the property is owned in varying shares and the owners are not married or civil partners, income and gains are divided in proportion to their ownership. In the case of married couples or civil partners, income is considered to be shared equally, regardless of the beneficial ownership unless both parties declare a different income split based on the beneficial ownership of the income and the property. Capital gains would follow the beneficial ownership.
Considering the Information Above, Here's How to Reduce Capital Gains Tax:
If one spouse owns a property in their name, it may be advisable to transfer the property into joint ownership before selling it, assuming the other spouse has not yet used their CGT exemption in the relevant tax year. However, caution is necessary because if this transfer is conducted shortly before a sale, HM Revenue and Customs may challenge it as invalid under anti-avoidance rules. Additionally, you must ensure that any income received after the property transfer is declared on each spouse's tax return, which may lead to increased income tax payments. There will also be conveyancing costs associated with transferring the property into joint ownership.
In brief, no, but you can deduct the cost of materials. Travel expenses related solely to the property should also be eligible for deduction. However, time spent working on the property cannot be deducted.
A frequently asked question for which we have crafted a dedicated, in-depth article. A must-read for any property owner, regardless of their scale.
Deductible Expenses Against Rental Income.
You have the freedom to rent out a property to a connected person or anyone else, regardless of the rent you choose to charge. However, if you decide to rent the property at a rate below the market value, you won't be able to offset these losses against other rental profits. Instead, you can only carry forward these losses to offset against future rental profits earned from the same tenant.
In the present tax year, a shareholder within a limited company typically has the opportunity to receive up to £2,000 in dividends without incurring tax.
Fees for UK Residents
For property owners in Great Britain or Northern Ireland seeking tax services, simply specify proprietor, and we’ll manage everything.
Two Properties
Sole Owner
- Managing two properties and aiming for substantial rental income may add some complexity to your tax return.
- Contact us to get a fixed fee quote
Three Properties
Sole Owner
- When you have three properties in the rental market, additional efforts are needed to ensure your tax expenses are managed effectively.
- Contact us to get a fixed fee quote
Two Properties
Joint Owner
- With this excellent value package, managing tax returns for both owners and their respective properties is made quick and effortless.
- Contact us to get a fixed fee quote
Three Properties
Joint Owner
- If you co-own three properties with a spouse, partner, relative, or friend, we offer the convenience of handling both tax returns for a single, all-inclusive fee.
- Contact us to get a fixed fee quote
Four Properties
Joint Owner
- If you have four or more properties in your portfolio, it's probably time to consider a comprehensive tax strategy. Our experts will collaborate with you to ensure you have the appropriate ownership structure and are capitalizing on available tax reliefs and allowances to manage your tax liability effectively
Fees for Non-Residents
Whether you’re abroad for business or leisure and require UK property tax services, the process remains identical. We solely require ownership information.
Two Properties
Sole Owner
- Owning two properties and potentially generating substantial rental income can add complexity to your tax return.
- Contact us to get a fixed fee quote
Three Properties
Sole Owner
- After adding three properties to the rental market, additional steps are necessary to ensure your tax expenses are managed effectively.
- Contact us to get a fixed fee quote
Two Properties
Joint Owner
- With two owners and two properties, our great value package efficiently handles both tax returns, making the process fast and straightforward for both of you.
- Contact us to get a fixed fee quote
Three Properties
Joint Owner
- If you co-own three properties with a spouse, partner, relative, or friend, we offer to manage both tax returns for a single, convenient fee.
- Contact us to get a fixed fee quote
Four Properties
Joint Owner
- If you have four or more properties in your portfolio, it's probably time to implement a comprehensive tax strategy. Our specialists will collaborate with you to ensure you've established the appropriate ownership structure and are capitalizing on available tax benefits and deductions to effectively manage your tax liability.
Tax Services Assistance is available if you have...
Engaged tax services for a rental property purchase
You’ve intentionally ventured into real estate investment, possibly driven by a positive experience with an inherited or acquired property, like when you moved in with a partner, and now you may require tax services.
Our tax services address your concerns about the tax bill
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Tax Services: Your Path to Financial Success
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Tax Services: Navigating Complex Tax Regulations
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