The threshold for tax-free allowance for trading and miscellaneous income currently stands at £1,000; the same is the threshold for tax-free allowance on income from the property. Tax planning for landlords is one of our many specialisations.
In case you rent a part of your main or only home, then the threshold of tax-free income from letting stands at up to £7,500.
Year-End Tax Planning & Capital gains
The CGT allowance for the majority of the taxpayers in the tax year 2020-21 is £12,300. It means that if your capital gains on any investment stand at £12,300, you will pay no tax on them.
You can utilise this CGT allowance by selling and then re-purchasing these shares. But for this purpose, the repurchase should either be made by your civil partner, spouse, or it has to be delayed for a period exceeding 30 days.
You can also sell your loss-making assets to slash capital gains in the tax year they apply to or you can carry forward your loss-making assets to set them against any future capital gains.
At IBISS & CO, our tax advisers have saved hundreds of thousands of pounds of individuals in terms of Inheritance Tax. They can do the same for you.
Reach out to us today for a 15-Minute Free Call.
To make the most out of your year-end tax planning, reach out to our experts now. We, here at IBISS & CO, will craft a strategy that will provide security and the best structure for your financial matters.
Our tax experts have compiled few tips for people with buy-to-let or holiday-let properties that they must take into account before the current financial year expires [5 April 2021].
Planning to do some property repair work? Then, please contemplate the timing of such expenditures as incurring costs before 5 April or after 5 April will affect your overall tax payments.
If expenditures have incurred on improving or repairing your rental property in the tax year 2020-21, please keep all receipts and details as they will come in handy when selling the property.
If you have been witnessing a reduction in your rental income since April 2020, then let IBISS & CO about the estimates of your rental income and expenditures till 30 April 2021. Our experts will let you know whether there is a possibility of an election to reduce tax payments on account.
Holiday Let Properties
As far as Holiday Let properties are concerned, there are some occupancy rules that you should meet so that you can retain the tax advantages. It is obvious that occupancy has reduced in the tax year 2021-21 due to the arrival of Covid-19 and subsequent lockdowns. In such cases, a review is not only critical but also helpful.
Here at IBISS & CO, our experts can help you. Reach out to us now for 15-Minute Free Call.