The
role of a Property Tax Accountant
Investing in propertyhas become a nationalafflictionin
the UK over the last 20 years. Some
landlords perhaps owning just one buy to let property, other turning it into a
business creating a portfolio of properties.
Many having seen a gap in the market for a shortage of housing have
diversified anddecidedto invest in property development projects.Whatever style
of investment adopted, one inevitable consequence is that of taxation,be it in
the form of capital gains tax, income tax, stamp duty etc.
Over the years the reigning political
parties have altered the landscape of capital gains regime on investment
properties several times. Such that getting advice froma Property Tax Accountant becomes
vital part of the decision making in the final returns of property investment. Whatever
type of property investment one is in: landlord holding a single property, or holding
multiple properties, even under a shelter of a limited company, as a developer
or a construction firm, the investment is subject to a property related tax.
As the economy evolves governments will
amendrules and regulations governing property will change to meet their policy
targets. Therefore it has never been so important to have a Property Tax Accountant on side to
ensure the best possible returns are gained and even more importantly the
correct taxation is calculated and settled on time. For example there are
instances and exceptions where income tax may apply instead of capital gains tax
so it becomes very important to establish the applicable regime of tax as
income tax rate can be far higher than capital gains tax rates.
Investing in property is a high risk
business regardless of the budget be it in thousands or millions, the gains or
losses can be substantial if you get your sums wrong. Equally, if an incorrect
tax rate or regime is applied, it could result in a high tax bill when a
Revenue prompted enquiry commences.
Going forward advice gained from Property Tax Accountant continues
to be essential.
Over the next few years HMRC will be phasing
in a restriction on the tax deductibility of interest payments on your buy to
let mortgage. There are a number of ways
of mitigating the consequences but it depends on individual circumstances and
planning. There are a new
number of compliance issues to be met, for example, from the 6th
April 2018 the government is introducing a policy whereby there will be
quarterly reporting and landlord will be caught by this new legislative form of
reporting.
A tax payer has a clear choice of either go
through the maze of taxation and living with the consequences of their property
transaction as they present themselves, or better still the absolute key to a
desired tax effect comes from careful and selective tax planning from expert
buy to let Property Tax Accountant beforehand.
