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Principal private residence (PPR) relief shelters gains on disposals of an individual’s only or main residence from capital gains tax (CGT), subject to certain conditions and limitations. 

Principal private residence (PPR) relief shelters gains on disposals of an individual’s only or main residence from capital gains tax (CGT), subject to certain conditions and limitations. 

Mark McLaughlin looks at the principal private residence relief position for capital gains tax purposes of absences from home to provide care for an infirm relative. 

The ability to transfer a property portfolio to a company in a tax-efficient manner hinges on whether the activities constitute a 'business' rather than mere investment activity.

This is important for capital gains tax (CGT) purposes as incorporation relief requires the transfer of a ‘business’. A business is also a fundamental principle in establishing a partnership for the purpose of partnership law. Provided a partnership exists, stamp duty land tax (SDLT) may be mitigated as a result of the ‘sum of lower proportions’ calculation. 

Nick Wright explores the critical 'business' requirement for tax-efficient property portfolio incorporation, examining when rental activities qualify as genuine business rather than passive investment.

The capital gains tax (CGT) property return was introduced in 2020 as part of HMRC's ‘making tax digital’ initiative. Any individual UK resident who sells or gifts a UK residential property that is not exempt is required to submit a return and make the necessary payment within 60 calendar days from the date of completion of sale. 

The UK property reporting service (also known as the 'CGT on UK property service') is separate from the self-assessment system with different reference requirements, submission and payment deadlines. Consequently, a CGT property account can only be accessed from specific pages on the GOV.UK website. 

Jennifer Adams investigates common errors taxpayers may make when completing capital gains tax property returns.

For many young people, the dream of buying their own home seems far out of reach. To help get on the property ladder, many offspring have benefited from the ‘bank of mum and dad’ to boost their deposit or help them secure a mortgage. 

However, where the parents have investment properties in addition to their own home, they may consider gifting a property to their son or daughter. 

Sarah Bradford looks at the gifting of property to a family member and considers whether it is better to pass on the family home or an investment property.

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.