Tagged: buying a property

Tax checklist on buying a property

We at 1st Financial Foundations are always looking to update our clients on how to be tax efficient. This is a great article by Alan Pink who offers a helpful list of tax issues to consider when purchasing a property.

It’s generally recognised that buying a property comes somewhere on the list of highly stressful activities, along with divorce, Christmas, and filling in a VAT return. But the stress involved with arranging finance, chasing your solicitor, chasing your vendor, and wading through reams of ‘searches’ and so on, shouldn’t deflect your mind from considering the potentially very important tax aspects surrounding acquisition of a property.

So, here’s a check list, which hopefully will get you at least asking the right questions, from a tax planning point of view, when approaching a property purchase.

How to cope with loosing buy to let tax relief

property tax

Are you an individual or a Company affected by the change in tax on property?

The recent tax change can either hold a cloud or silver lining for you… how best to cope with these obstacles.

You could be feeling a double blow with the announcement that tax relief on buy-to-let mortgage interest payments would be slashed from April 2017 and that buy-to-let properties (and second homes) would incur an extra 3 per cent stamp duty. If you’re new to buy-to-let, you might not appreciate the grand scale of this is. Up to now, people buying to let have been able to claim tax relief on their mortgage interest payments at their marginal rate of tax. This means that a basic rate taxpayer would get 20 per cent tax relief, but those at a higher rate would receive 40 per cent relief, while top-rate taxpayers could claim 45 per cent.