In a furnished let, wear and tear of domestic items are inevitable and there will come a time when the landlord will need to provide replacements.

Relief for replacement of domestic items

In a furnished let, wear and tear of domestic items are inevitable and there will come a time when the landlord will need to provide replacements. From a tax perspective, special rules apply to provide relief for the cost of replacement domestic items. The rules only apply to residential lets,…

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NEW FURNISHED HOLIDAY LETS – APPLYING THE TEST

New furnished holiday lets – Applying the test

All business must start at some point, and a furnished holiday lets (FHLs) business is no exception. Unlike other rental properties, furnished holiday lettings enjoy special tax rules. As a result, they are able to benefit from capital gains tax reliefs for traders and claim capital allowances for furniture, fixtures,…

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How-to-find-Capital-gain-on-the-sale-of-an-investment-property

How to Calculate Capital gain on the sale of an investment property

If you sell a property that has not been your main residence throughout the period that you have owned it, you may need to pay capital gains tax if a gain arises on the disposal of the property. This may be the case if you have an investment property, such…

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Is rent-a-room relief always worthwhile?

Is rent-a-room relief always worthwhile?

Rent-a-room relief aims to encourage those with spare rooms in their homes to let them out to increase the supply of furnished rental accommodation. Under the scheme, a person can earn up to £7,500 each tax year tax-free from letting out furnished accommodation in their own home. The limit is…

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Extracting profits from a property company

Extracting profits from a property company

Running a property business through a limited company rather than as an unincorporated business may be an attractive proposition; at 19% the rate of corporation tax is lower than the basic rate of income tax and interest and financing costs are fully deductible in computing taxable profits. However, the tax…

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