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Incorporation relief for capital gains tax (CGT) purposes is potentially available under TCGA 1992, s 162; broadly, the business owners transfer their interest in a qualifying business, in exchange for new shares issued by the company. On a qualifying transfer, the capital gain that would otherwise arise on the disposal of the chargeable assets is postponed (or ‘rolled over’) into the shares, pending their subsequent disposal, etc.

Lee Sharpe looks at some of the finer points of CGT incorporation relief for property businesses.

Principal private residence (PPR) relief is one of the more valuable reliefs against a charge to capital gains tax (CGT) on the sale of a residential property. The relief is available on an individual's residence provided the house was occupied as their main residence throughout the period of ownership; the last nine months are also covered in the PPR claim. Furthermore, there are various provisions to cater for situations such as periods of absence.

Jennifer Adams warns that capital gains tax principal private residence relief could be forfeited should a main residence undergo refurbishment. 

If you have lived in a property at any point as your only or main residence, you may qualify for principal private residence (PPR) relief for certain periods during which you were not actually living in the property. 

Sarah Bradford explains how qualifying absences can reduce the capital gains tax bill on the sale of a former home.

Valuations of assets for inheritance tax (IHT) purposes is a specialised area. It is generally not an area for inexperienced taxpayers or tax professionals to dabble in. Even HM Revenue and Customs (HMRC) does not normally engage in tax valuations of assets; instead, it uses specialists in other government departments (e.g., Shares and Assets Valuation for unquoted shares, and Valuation Office Agency (VOA) for land and buildings). 

Mark McLaughlin looks at valuing gifts of land and property for inheritance tax purposes.

Property partnerships seem popular these days – typically, as a stepping-stone to greater things. Regular readers will know that I have long criticised HMRC’s published position on whether a property partnership exists, as distinct from simply co-owned property. My argument is that HMRC has drawn up its guidance to set an unreasonably high threshold to ‘make the grade’ as a partnership.

Lee Sharpe looks at whether a joint property letting activity amounts to a partnership, and why it is relevant to landlords.  

Most people do not expect to have to pay capital gains tax (CGT) when they sell their home. Private residence relief (also known as main residence relief or principal private residence relief) normally applies in full when the property has been the taxpayer’s only or main residence throughout the whole period for which they have owned it.  

Sarah Bradford outlines the concept of a ‘main’ residence for capital gains tax purposes. 

The government (HMRC) has become increasingly worried about the volume of small and medium-sized enterprise research and development (R&D) tax credit payments where a company claims to have undertaken eligible R&D activity (and it is important to keep in mind that only certain types of R&D may qualify – there are a lot of criteria).

Lee Sharpe looks at tax aspects of modernising property and the risk of disallowance as improvements that constitute capital expenditure, losing income tax relief in the property business. 

Whether to buy commercial or residential property depends on various factors, not least the more beneficial tax system for commercial lets and whether an individual or a company is purchasing the property. The government wishes to encourage commercial lets and therefore permits a more generous tax regime than residential lettings. 

Jennifer Adams considers some important tax benefits of investing in commercial property.