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Advice For You & Your Family

Property Tax

Whether it’s your first or second home or whether you are buying, letting or selling there can be tax implications and it is important you get it right.

Whether you're a landlord looking for help maximising the tax efficiency of your portfolio whilst staying compliant or looking for tax advice on buying or selling a property - MJH Accountants Preston can help.

Buying your property

You pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential properties.

Rates increase as the cost price increases. However, there are some reliefs for first-time buyers.

When buying your second and subsequent properties you’ll usually have to pay 3% on top of the normal SDLT rates. Keeping your initial residence and buying an additional property to move into can result in the 3% premium being charged and advice should be sought prior to purchasing.

Letting your property

If you let out a property you are likely to be liable to income tax on any profit you make. Your profit is the amount left once you’ve added together your rental income and taken away the expenses or allowances that you can claim. There are different rules to follow if you’re:

You can get up to £1,000 a year tax-free allowance for property income.

Selling your property

Usually, when you sell your own home you benefit from private residence relief and therefore don’t pay any Capital Gains Tax. However, this doesn’t apply unless all of the following conditions are met:

Married couples and civil partners can only count one property as their main home at any one time.

You may have to pay Capital Gains Tax if you make a profit when you sell property that’s not your home, for example:

Your gain is usually the difference between what you paid for your property and the amount you got when you sold it.

You can deduct costs of buying, selling or improving your property from your gain. These include:

The capital gains tax allowance is £12,300 per annum.

Book a No-obligation Call or Meeting

Book a call or meeting discuss your needs, we’ll discuss your business in detail and how we plan to make you more successful as well as provide a detailed proposal of our services. At MJH Accountants, we take the time to understand your goals and objectives and work with you to achieve these with our tailored approach.

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01772 721704