There is no principal private residence relief available to an owner if he doesn’t live in the property, but his relatives do.

However, if someone owned a property on 5 April 1988 that has been continuously occupied rent-free by a dependant relative since that date, the property is exempt from CGT when the owner disposes of it.
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What is meant by the term fixtures and fittings and when can you offset the replacement of them against your income tax?

Fixtures and fittings are items that are classed as being an integral part of the property. If a new tenant moves into a property, they will expect these items to be in the property.

Examples of fixtures and fittings include:

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Entrepreneur’s Relief (ER) was introduced for gains made after 5 April 2008, and replaced the old Taper Relief.

It is a lifetime allowance of £1,000,000 applicable to gains on disposals of business assets. Instead of being charged at 18%, the first £1m of gains made after 5 April 2008 are charged to tax at 10%.

Business Assets are strictly defined:
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There is no IHT liability if a spouse inherits assets from their partner. This is regardless of the value of the inheritance.

Here are four common ways of reducing inheritance tax.

1. Utilising the £312,000 threshold level
If circumstances are such that your estate is not worth more than the current threshold level, there is no tax liability for the inheritor.  However, this scenario is becoming more and more unlikely!

2. Gifting to a spouse
All gifts between husband and wife are exempt from tax as long as they are both domiciled in the UK.
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If a property has been your main residence, and at some other stage in your ownership it has been let as “residential accommodation” then there is a further relief from CGT on the part of the gain that is attributable to the period of letting.

The relief is the smallest of:

• The gain due to the letting

• The amount of the gain that is exempt as your main residence

• £40,000

The relief also applies where you own a house and let part of it throughout the time you own it.  See the case study below for an example:
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