Key Updates to the Construction Industry Scheme

May 3, 2024

Key Updates to the Construction Industry Scheme (CIS): Implications and Opportunities At Merranti Accounting, we are dedicated to ensuring our clients in the construction sector are fully aware and prepared for the recent changes to the Construction Industry Scheme (CIS). These adjustments aim to simplify compliance and improve the efficiency of tax handling within the

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Property Taxation

March 8, 2024

Multiple Dwellings Relief (MDR) MDR is a relief from Stamp Duty Land Tax (SDLT) that applies to bulk purchases of properties. The Government has concluded that it does not achieve its intended objective and is open to abuse, so it will be abolished for transactions with an effective date on or after 1 June 2024.

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Property owners Letting property

January 26, 2024

Property owners- Letting property   Profits from a rental business are subject to income tax at your marginal rate of tax. • Expenses incurred wholly and exclusively in connection with the rental business are deductible when calculating net taxable profits. Provided they are not capital in nature. • However, there is a restriction on deductions

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selling Buy to let

Selling your buy-to-let

September 5, 2023

Selling your buy-to-let   In the UK and there is no CGT to pay (because, the gain is covered by your capital gains exemption). There is no requirement to submit the UK Property Return. The capital gains exemption available for 2023/24 is £6,000. The second important date is 31 January following the end of the

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mortgage interest

Relief for excess mortgage interest

March 10, 2023

Since 2020/21, the deduction of mortgage interest and other finance costs (e.g. arrangement fees) from residential rents is completely blocked for tax purposes for individual landlords (not companies). Instead, the landlord receives tax relief at the basic rate (20%) as a tax credit against the tax due on the property income. With interest rates rising,

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for rent

Rent-a-room relief

February 5, 2023

When you let rooms in your own home as residential accommodation, you can receive the rent tax-free if it falls within the limits for rent-a-room relief. This relief is currently capped at gross rents of £7,500 per year. Where more than one person receives the rent from the property, each person has a tax-free exemption for rent

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Furnished holiday lets

Furnished holiday lets

August 2, 2021

Landlords who let holiday accommodation have largely been left out of the covid-related business support. Where the property was registered for business rates, the owner qualified for some small local authority grants, but other landlords received nothing. Holiday letting businesses have also suffered from the various lock-downs that restricted travel across the country. This has

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Capital Gains Tax

Capital Gains Tax on sale of homes

July 16, 2021

When do I pay  Capital Gains Tax? The profit you make on selling a buy-to-let property or a second home is generally subject to capital gains tax (CGT). Also, you may have to pay some CGT on the profit you make from selling your main home. If you have not lived in that property for

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Landlof tenant eviction Property accountant

When will Commercial Evictions start?

July 16, 2021

When will the Commercial Evictions Start again? There has been no rent holiday during the pandemic, but landlords have been barred from evicting tenants from commercial premises. This restriction will now remain in place until March 2022. In addition, the existing debts of unpaid rent accumulated during the pandemic will be ring-fenced, in order to

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Building site Special purpose vehicles Property accoutant

What is an SPV in Property?

March 16, 2021

An SPV, Special Purpose Vehicle, is a standard limited company that has been set up purely to transact for one purpose or transaction. When you intend to purchase a property or land to build residential or commercial development, it is common for this to be bought in a newly registered company that has no liabilities

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