Contents - Tax Secrets for Property Developers and Renovators

Contents

About James Bailey

About This Guide

1.1       Homeowners

1.2       Buy to Let

1.3       Buy to Sell

2       A Word about Limited Companies

3       What This Guide is Not About

4       Staying on the Right Side of the Prison Wall

4.1       Tax Planning and the Duke’s Gardener

4.2       Anti-avoidance Legislation

4.3       The “Ramsay” Doctrine

4.4       The Disclosure Rules

4.5       Tax Evasion – The Other Side of the Prison Wall!

5       Key Tax Dates for Your Diary

6       Anti-avoidance legislation – Section 776 ICTA  1988

7       Trading in Property

7.1       How to Avoid the £100 Trading Fine

7.2       National Insurance (NI) Contributions

7.3       Income Tax and NIC for the Property Developer

7.4       Property Development and Limited Companies

7.5       Accounts and Records

7.6       The Construction Industry Scheme (“CIS”)

7.7       Why bother with the CIS?

7.8       VAT

7.9       Property Developers and Trading Stock

7.10     Property Not Acquired as Trading Stock

7.11     Taking Out Property Trading Stock for Your Own Use

7.12     Expenses for Property Developers

7.13     “Wholly and Exclusively”

7.14     Allowable Expenses

7.15     Travelling Expenses

7.16     Cost of Car and Capital Allowances

7.17     Alternative Method for Car Mileage

7.18     Other Capital Allowances

7.19     Employed or Self Employed?

7.20     Grossing Up

7.21     Losses

7.22     Finance

7.23     Proprietor’s Capital Account

7.24     Loans for Mixed Purposes

7.25     Partnerships

8       Taxation for Homeowners

8.1       The Basic Exemption

8.2       “Only or Main Residence”

8.3       “Garden or Grounds”

8.4       Periods of Absence

8.5       “Job-Related Accommodation”

8.6       “The 36 Month Rule”

8.7       Nominating Your Main Residence

8.8       Relief for Letting

8.9       Income Tax Relief for Letting

8.10     Restrictions on Main Residence Relief

8.11     Withdrawal of Main Residence Relief

8.12     Pseudo Property Dealing

8.13     Enfranchisement of Leasehold Property

9       Property Development of Your Home

9.1       Selling the Garden

9.2       What is a “Main Residence”?

10      Buy to Let Development

10.1     Income from property

10.2     Capital v Revenue, and “Wholly and Exclusively”

10.3     Allowable Expenses

10.4     Bad Debts

10.5     Cash Basis

10.6     Loft and Cavity Wall Insulation

10.7     Rent Collection

10.8     Staff Costs

10.9     Repairs and Renewals

10.10   “Notional Repairs”

10.11   Modern Materials

10.12   Repairing Newly – Acquired Property

10.13   Legal and Professional Fees

10.14   Furniture, etc.

10.15   Renewals Allowance

10.16   Wear and Tear Allowance

10.17   Renewals and Wear and Tear Allowance

10.18   Capital Allowances (CAs)

10.19   Flat Conversion Allowances

10.20   Losses

10.21   “Partnerships” and Letting Property

10.22   Travelling Expenses

11      Financing the Property & Developments

12      Furnished Holiday Accommodation

12.1     So, What is “Furnished Holiday Accommodation?”

12.2     Advantages of Furnished Holiday Accommodation  (FHA)

12.3     Capital Allowances

12.4     Losses

12.5     Pension Contributions

12.6     Profit Split for Married Couple or Civil Partnership

12.7     Capital Gains Tax

12.7.1    Rollover relief

12.7.2    Gifts of Business Assets

12.7.3    Business Taper Relief

13      Commercial Property

13.1     Capital Allowances

13.2     Premiums for Leases

13.3     Taper Relief and Commercial Property

14      Taper Relief

14.1     What is a “Business Asset”

14.2     Buy to Let and Business Asset Taper relief

14.3     Taper Relief and Relief for Main Residence – a Nasty  Trap

14.4     Gifts Between Spouses (and Civil Partners)

15      Stamp Duty Land Tax

15.1     “Chargeable Consideration”

15.2     Debts (Including Mortgages)

15.3     Transfer to a Company

15.4     Exchange of Property

15.5     “Linked Transactions”

16      Tax Investigations

17      Inheritance Tax for Property Developers

17.1     IHT – The Basics.

18      Bonus Report - How to Master a Tax Investigation

Appendix A – VAT Questions and Answers

General VAT Questions

Full-time Property Developers

VAT and Buy-to-Let

VAT - Investigations

APPENDIX B – List of Case Studies