If you’re a property owner, make sure you understand the various types of property tax that you are liable for and take action to reduce your tax bill. There are certain regulations you must abide by to avoid getting into trouble. If you act quickly, you may be able to avoid paying a large tax bill and avoid having to make a formal appeal later on.
We will explore some dos and don’ts of UK property tax below!
Do: Understand the Types of Property Tax
There are several different types of property tax that are relevant in the UK. Make sure you understand the details of each type before you make a decision. Here are the common property taxes:
Capital Gains Tax – this is calculated on the increase in the value of your property between the date of purchase and the date you sell the property.
Council Tax – this is levied by local authorities such as your local council.
Inheritance Tax – this is levied on the transfer of your property to your heirs.
Don’t: Ignore Tax Notices
If you get a tax notice, you should act promptly to reduce your tax bill. Failing to do so can result in a hefty fine and other penalties. It may also lead to the seizure of your property.
Do: Keep the Records
Keep all the property-related records such as purchase agreements, mortgages, deeds, tenancy agreements and other documents. Ensure that these records are kept up-to-date and maintained properly.
Don’t: Making Claims that Can’t be Justified
Claiming bogus benefits like housing benefit is illegal. It’s also a waste of public money. If you cannot justify a claim, you may be found guilty of fraud.
Do: Hire a Property Tax Advisor
Property tax can be complex, which is why it’s good to hire a property tax advisor who can help you with the necessary documentation and paperwork.
Don’t: Avoid Fines
If you violate a taxing body’s rules, the agency may impose a fine on you. However, the fine may be significantly reduced if you pay the fine by the due date. That being said, do not ignore the taxing body’s notice for not paying the fine.
If you need help with your property taxes, hire our experienced and qualified property tax accountants in London.
At IBISS & CO., we have a team of property tax specialists who can help you with your tax liabilities. We also offer help with inheritance tax, capital tax gains, and more in London and Walsall.
Get in touch with us today.
