It is not uncommon for the owner of an investment property (e.g., a parent) to wish to transfer rental income (e.g., to adult offspring) but retain ownership of the property. However, the tax implications need careful consideration. How much to give away? For example, the gift of a property interest is treated as a disposal… Read More »
This is generally sensible, particularly if the taxpayer does not have a professional adviser. However, things can sometimes go wrong, and caution is needed. Misunderstandings can easily arise. Pre-letting expenses For example, in Negka v Revenue and Customs [2019] UKFTT 0082 (TC), the taxpayer bought a residential property on 12 July 2013. She lived there… Read More »
Capital gains tax (CGT) relief is generally available on the disposal of property in respect of improvements etc., for ‘the amount of any expenditure wholly and exclusively incurred on the asset by him or on his behalf for the purpose of enhancing the value of the assets, being expenditure reflected in the state or nature… Read More »