Land & Property Taxation

Many clergy own and let property. For most it is not an investment as such, but hopefully a successful means of providing accommodation for retirement. Having said that we do also advise a number of property investors with quite substantial portfolios, including property situated all over the world.

Property taxation can be complex as potentially there are lots of different taxes that need to be considered such as income tax, capital gains tax, inheritance tax, corporation tax, stamp duty land tax, VAT, etc. It depends on what type of property or land you own and let, be it residential, commercial, holiday accommodation or simply a room in the vicarage.

Below is a taster of just some of the questions that you need to consider:

• How do I work out my rental profits?
• How do I pay tax on my rental profits?
• What records do I need to maintain?
• What costs can I deduct from my rental income?
• How can I make the most of rental losses?
• Will I have to pay capital gains tax on disposal?
• What costs and reliefs can I claim in calculating my capital gain?
• Can I claim principal private residence relief even if I don’t live in the property?
• How do I get lettings relief to reduce my capital gains further?
• Should I buy the property jointly with my spouse or civil partner and if so, what share should each of us own?
• Should I buy the property through a limited company?
• In what ways is a holiday letting more tax efficient than normal residential property?
• Should I take out a mortgage or buy the property outright?
• How will my tax credit, student loans and EMA be affected?
• Do I still have to pay tax in the UK if I buy property overseas?

The list is potentially endless but the questions above highlight the need for expert advice.  Property investing requires the need for some serious tax planning and there are lots of legitimate ways of avoiding and minimising your liability.  Please feel free to contact us for further guidance.