Property Tax

by Debbie Franklin as Verified Adviser
  • Category:

    Property Tax
  • Page Author:

    Debbie Franklin
  • Role:

    Tax Accountant
  • Last Updated:

    01 May, 2021

Property Tax Overview

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A property tax accountant can help you to minimise tax, maximise wealth and reach your property goals.

We have a separate website, www.peplowsproperty.co.uk, dedicated to our award winning property services and packed with useful information and tax saving tips for landlords. This site includes many client reviews like the one below

"...we managed to save over £11,000 in our first year of being clients of Peplows. For us, this is a massive advantage of being associated with such experts and like-minded people." Gunawardena

You may just be taking your first step on the buy to let property ladder or have a substantial property portfolio. Whatever your circumstances, our award winning property tax specialists we will help you to navigate the complex property tax landscape and support you on your steps to financial independence.

Property tax is constantly changing. We can provide a fixed fee service and offer a comprehensive range of property tax and accountancy services tailored to meet client needs.


Q&A about Property Tax

It depends, one size does not fit all! As a very general rule of thumb a company MAY suit you if you are a higher rate taxpayer, does not need access to the rental profit at the moment and you have exhausted all other simple tax planning strategies. A key issue is the cost of borrowing for a company vs the cost personally.

If your costs would be allowable had the letting already started they yes. You can bring them in as if they were incurred on the first day of letting and this includes refurbishment of the property as long as the expenses are not capital (see next question).

If it is revenue expense yes, if capital no (this gets claimed against the gain on sale). You need to be replacing like with like or the nearest modern equivalent. If the repairs are carried out before the property is let then it must also have been in a fit state to be let when purchased, otherwise the repairs will be capital.

If you own a property jointly with your spouse 50:50, you will need to alter the capital ownership first. This alteration will apply for capital gains tax also. If the proportion of mortgage debt moving with the ownership is more than £125,000 then Stamp Duty Land Tax will apply but not at the extra 3% rates (correct at 2019). You then need to submit a form 17 to HMRC (with proof of change of % ownership) to elect to be taxed in accordance with the ownership rather than the 50:50 default. Without a form 17, jointly owned property will automatically be taxed 50:50 regardless of ownership. This cannot be backdated. The election remains in place until the ownership changes again. If your spouse owns only 1% of the capital in a property, the 50:50 default will apply and they can be taxed on 50% of the rental profit.

If you own the properties personally then no.

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