More woes for property owners? Not necessarily! Michael LansdellFeatured Products Promotional Features
Posted by: The Probe 15th October 2019
Property owners – including those who own through a company – should be aware that there are changes afoot. The changes relate to tax and how it’s paid and will also apply to people who are not residents of the UK.
April 2020 is the date that matters, so (in theory!) you will have plenty of time to get your property affairs in order, or maybe start to rethink any plans you had for the future, such as adding to your portfolio.
Because some of the new rules have to do with timings – such as a 30-day window for payment of any Capital Gains Tax (CGT) when you sell a property in the UK, or abroad – they could affect how organised you are, too! A refresh of how you arrange your personal and business finances is always worthwhile, especially as there will likely be new tools and software available to help make you more efficient.
So, what are the changes, then?
As stated above, there will be a new 30-day payment window for CGT – that’s 30 days after completion. Therefore, you’ll need good processes for filing all the information relating to the property – any work done to enhance it, for example – so it will be ready when the time comes. You’ll particularly feel the time squeeze if a property is gifted; quite simply you’ll have less time to fund the tax payment.
For non-residents, you will be looking at more liability. Incentives to keep property in low/no tax jurisdictions are – perhaps unsurprisingly – being reduced, as the government wants to level the tax playing field between non-residents and residents.
If you are a non-resident, you are currently taxed on any gains you make when you dispose of UK residential property. After April 2019, the rules are being extended to include UK non-residential property and indirect disposals. If you are in this category, you will know how complex the system can be – you will no doubt have already enlisted the services of a specialist accountant who understands the rules and knows how to keep you within the law, as well as making the most of your asset(s).
But there is never a bad time to find someone who can see clearly the potential pitfalls ahead and can provide sensible, practical advice. For dental practice owners, if they can find an expert with knowledge of the industry, even better! Lansdell & Rose are chartered accountants who know dentistry inside out, through years of working with and advising practice owners and associates. Not only can they help with tax planning, but they can help you with organising your financial matters efficiently, for peace of mind.
Something else that you might be interested in is a new public register, recording which owners of overseas companies have purchased property in the UK. This is due to start in 2021. More transparency, then, and more checks in place to ensure that everything is above board. These checks will include a special identifying number to enable a foreign company to buy into property in the UK.
Some might argue that the new rules simply place more burdens on property owners, but owning property as an asset – whether you plan to sell, or want to rent it out to bring in some income – is never usually a ‘bad’ idea. Certainly, get any properties valued for 2019 and make sure you are up-to-date – but as long as you know which way the wind is blowing with regards to property (and is likely to continue blowing) there is no need to make snap decisions. Work with an expert and you’ll be organised for the changes ahead.
To find out more, call Lansdell & Rose on 020 7376 9333,
Or visit www.lansdellrose.co.uk
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