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Houses in multiple occupation (HMOs) typically comprise several separate rooms or ‘units’ occupied by independent tenants, but sharing common amenities. In some cases, a tenant may have their own bathroom and even ‘kitchenette’; in other scenarios, the individual rooms might be less well furbished and share kitchen, bathroom and living room facilities. 

Lee Sharpe looks at recent tax developments that affect houses in multiple occupation.

On a property disposal by an individual, the legal and beneficial ownership of the property is normally transferred simultaneously. However, it is important to appreciate that legal and beneficial ownership are not the same; beneficial ownership is generally relevant for capital gains tax (CGT) purposes rather than legal ownership (NB this article considers the law in England, Wales, and Northern Ireland).

Mark McLaughlin looks at when a constructive trust can arise and the potential capital gains tax implications.

The most straightforward method of financing a buy-to-let property is via the use of the landlord's own resources, if possible. Savings account interest rates are currently hovering around the 5% mark (with a return after basic rate tax of 4%: or 3% for higher-rate taxpayers) and the more cash invested in a rental property, the higher the percentage of return. 

Jennifer Adams considers various options for financing a buy-to-let property and the tax implications for each.

Platforms such as Airbnb can be used to earn income from Sarah Bradford explains how income from letting short-term accommodation through Airbnb and similar platforms should be reported to HMRC.

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.