Residential property tax

Those buying property face many tax issues, whether it is for their main home or an investment. For example, inheritance tax and the family home is complex, as is managing capital gains on buy to let property.Our expert team can help. 

Whether you have already purchased a property or are considering investing in one, you should seek advice to ensure you own and manage it tax-efficiently. If you purchase property personally, it may be that you could incur tax which could be mitigated if you were to adopt another structure for asset ownership. RSM can assist you in evaluating your position. If you choose to buy residential property through a company, there will also be corporate tax considerations.

If you are selling a property, the factors that determine whether any capital gains tax due are:

  • how it was purchased;
  • the duration for which you have owned it; and
  • whether you have resided at the property.

In recent years there have been a number of changes to the way property is taxed in the UK. The rules are now particularly complex and full of pitfalls. It is therefore essential that you consider all new investments carefully. Existing structures should be reviewed by experts who can assist in developing the right solution for you as a property owner.

If you are considering purchasing property overseas, there are a myriad of issues to consider. You will need tax advice from a UK perspective and from the country in which the property is based. At RSM, we can use our united global network to provide this support.

How we can help

Our tax team can tailor our services to meet your needs. We can help ensure your main residence is treated tax-efficiently and that any rental properties, if held personally, are making a tax-efficient return for you. We’ll take into account relevant income tax relief and deductions for all allowable expenses such as management fees. We can also advise on:

  • the stamp duty land tax position;
  • the non-resident landlord scheme;
  • any VAT consequences; and
  • capital gains tax payable on sale.

For investors we can also ensure a tax-efficient structure is adopted, debt finance is managed, and that acquisitions and disposals are tax efficient.

In addition, RSM can consider whether it may be suitable to hold a property in a trust or in a personal investment company.

If you’re interested in managing your property more tax-efficiently, please do not hesitate to contact us.

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