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Resources

Property landlords

Property landlords are already facing a number of changes, which have applied with effect from 6 April 2017.

For many landlords their tax liability on rental income is based on net cash receipts from their property business, unless they elect otherwise. Where the cash basis applies, the tax-deductible finance costs are restricted if the amount owed at the year-end exceeds the cost of properties held when acquired for the property business. There may be a comparable restriction if the cash basis is not applicable, but it is likely to be more flexible. This restriction is separate to the provision that confines the income tax relief for part of the finance costs of landlords of residential property to 20%. The proportion affected is 25% in 2017/18, 50% in 2018/19 and will rise to 75% for 2019/20 and 100% subsequently.

This also applies to interest on loans used to provide capital for partnerships letting residential property.

Current Issues

Offshore Reporting Funds

An overview of the tax treatment of offshore investment funds and the effect on UK investors when the fund applies for ‘offshore reporting fund’ status.

Financial Services Update – June 2022

In this issue we cover the latest compliance and policy developments for the sector, plus the implications of fresh FCA guidance.

Making your inheritance tax allowances count

More and more estates are now subject to paying inheritance tax (IHT), but much can be done to mitigate liability by using the available allowances.