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General

Furnished Holiday Lettings

Furnished Holiday Lettings and Interest Costs

For tax purposes, furnished holiday lettings are something of a special case and benefit from a number of advantages not available to standard residential lets. One of these advantages is in relation to the treatment of interest and finance costs.   Residential Landlord – Restriction of Relief Residential landlords can now only obtain relief for …

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Transfers of Assets between Spouses

Special Capital Gains Tax Rule for Transfers of Assets between Spouses

Although married couples and civil partners are assessed individually for capital gains tax purposes and each has their own annual exempt amount, a special rule allows them to transfer assets between them at a value that gives rise to neither a loss nor a gain. This can be very useful from a tax planning perspective. …

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Are you trading

Are you Trading?

Trading income is taxed for both income tax and corporation tax purposes. In order for a tax charge to arise under the trading income rules, there must be a trade. It is therefore necessary to understand what constitutes trading, and when a trade commenced or ceased.   Indicators of Trade To determine whether a trade …

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Capital Allowances on Disposing Asset

Disposing of an Asset on which Capital Allowances have been Claimed

Capital allowances are the tax equivalent of depreciation, and the mechanism of providing tax relief for certain items of capital expenditure. However, with the exception of cars, capital allowances are not available where accounts are prepared under the cash basis; instead, relief may be available as a deduction in computing profits under the cash basis …

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