Property ownership can create a range of tax obligations, whether you own your family home, investment properties, land or a property portfolio. Understanding the tax implications of buying, owning, gifting or selling property is essential to avoid unexpected liabilities and ensure your assets are structured as efficiently as possible.
At Gepp Solicitors, we advise individuals, families, landlords and property investors on a wide range of property tax matters. Our experienced team can help you understand your tax position, identify available reliefs and plan ahead to minimise unnecessary tax liabilities.
We provide practical advice on capital gains tax, inheritance tax, stamp duty land tax and wider property tax planning, helping clients make informed decisions and protect their long-term financial interests.
The value of property can make up a significant portion of someone’s wealth, and income in some circumstances.
The main capital taxes that are relevant to property are:
All of these add to the tax burden for owners of property.
SDLT is payable on the chargeable consideration paid for a property/land or part of a property/land. Chargeable consideration doesn’t just mean the money that exchanges hands on a purchase. It can be the assumption of debt on a gifted property, if there is a mortgage attached. Most people check the SDLT when they buy a property, but care needs to be taken when being gifted a property or purchasing at an undervalue as SDLT may still apply.
When a property, or other asset, is disposed of there is a potential CGT liability to consider. Just because no sale proceeds are changing hands, it doesn’t mean that there isn’t a tax liability. This means that it is very important to check if a liability arises before any transaction takes place. It may be possible to mitigate a tax liability and early planning is recommended.
Disposal of residential property may also need to be disclosed to HMRC within 60 days of completion, with the tax paid by the same deadline.
IT paid on rent received can be reduced by utilising spouses lower rate bands. Tax relief can also be received in full for mortgage interest payments, which may not be the case for higher or additional rate taxpayers.
Property values have increased dramatically over the last few years, and this can lead to an increase in IHT payable on death. It is possible to plan to give away property and, in some cases, retain the rental income.
The key, as with any planning, is to look at what you would like to achieve early.
Understanding the options available is the first step in successful tax planning.
Our Private Client team combines legal expertise with extensive experience in tax and estate planning. We work closely with individuals, families and property owners to provide clear advice that is tailored to their personal circumstances and long-term goals.
Whether you are considering selling a property, transferring ownership, planning your estate or seeking advice on a potential tax liability, we can help you understand your options and plan effectively for the future.
Call: 01245 228125 or email: privateclientenq@gepp.co.uk or request a call back.
If you want to find out more about the services we can offer you, please feel free to get in touch.
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