The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
An area that commonly raises questions regarding its deductibility against rental income is interest (often the single biggest cost for a landlord).
The rules are different for income tax and for corporation tax. For corporation tax rules, see the Deduction of interest against property income ― corporation tax rules guidance note.
Prior to 2017/18 (see below), interest was treated as a revenue expense, whatever the nature of the loan. The incidental costs of obtaining loan finance are specifically allowed as revenue costs.
For income tax purposes, the principle is that interest payable on a loan to buy land or buildings used in the property business, or on loans to fund repairs, improvements or alterations, is an allowable expense. Overdraft interest, interest under hire purchase agreements, etc, is also deductible provided the capital funds are used in the rental business. This is still the case after 5 April 2017; it is just that the method of relieving the expenses has changed.
HMRC accepts that the same principles apply as for any other trade or busines
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‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
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