Iain Wallis

Proven Tax Strategies for High Net Worth Individuals

0191 603 0270

Follow Me on FacebookFollow Me on TwitterFollow Me on LinkedInFollow Me on PinterestFollow Me on YouTube
  • Home
  • About Me
  • Property Wealth Builder
    • Property Investor
    • Property Mentor
  • Tax Strategies
  • Keynote Speaker
  • My Books
    • Essential Tips to Avoid Property Taxes
    • Legally Avoid Property Taxes
  • My Blog
  • Contact

Some timely tax planning tips with 5 April coming fast

March 22, 2013 By Iain

 

Here’s a few tax tips to ponder and take action upon before the end of the tax year:

Income Tax

Those property investors who do not trade through a limited company have no choice as to when to make up your accounts.

Letting income will always be that arising in each tax year to the 5th April.

In looking to save tax in any business approaching a year end, you would look to defer income and maybe bring forward expenditure.

Now with rental income it’s pretty hard to defer income as I would expect you receive your rental each month so not much planning opportunity there then so what about expendtiture. Well now we’re talking.

If you’ve some major repairs on the horizon, maybe a complete repaint and remember we are talking repairs here not capital expenditure, get in place a contract for the work to be undertaken. If you’ve contracted to have the work done then these costs can be brought into your letting accounts which a) may reduce the level of profit and save tax or b) turn a profit into a loss and again save tax.

Remember that loses can only be offset against other property income or carried forward in perpetuity to offset against profits. 

As an aside tax losses are personal and so a) can not be transferred to anyone and b) go with you to the grave.

Capital Gains Tax

You may have in your portfolio a property that is sitting on a nice capital gain. Now may be a chance to offload that at a slightly below market price for a quick sale and a tax free gain. Each individual can currently make capital gains tax free of £10,600. So a property held jointly could show a gain in excess of £21,200 and if sold before 5th April 2012 not create a tax liability.  I say in excess because you pay capital taxes on the net sale proceeds less the cost of acquisition.

Inheritance Tax

As with income tax and capital gains tax there is an exemption for inheritance tax. The annual exemption is currently £3,000 and thus the first £3,000 of any transfer of value will be exempt from Inheritance Tax. If the exemption is not used then this can be carried forward. So assuming no gifts were made last year, Mum and Dad could gift £6,000 to their children completely tax free. As an impoverished trainee accountant it was a relief I often brought to my parents attention, though this simple tax planning strategy always fell on deaf ears!

Further information on this topic can be obtained from Iain@iainwallis.com

Share on Facebook Share
Share on Pinterest Pin it
Share on TwitterTweet
Share on Google Plus Plus
Send To Devices Send

Filed Under: Capital Gains Tax, Inheritance Tax, personal tax, property investment, property tax, Taxation, Uncategorized

Latest Posts

Pot Holes! Does Fiscal Phil build our Wonderland?

Introduction Fiscal Phil in his 2018 Budget provides a few nasty … Read More... about Pot Holes! Does Fiscal Phil build our Wonderland?

What’s the new rent a room relief legislation?

From 6th April 2019, new legislation, and not necessarily for the better, … Read More... about What’s the new rent a room relief legislation?

What’s George up to?

George Osborne delivered a headline grabbing budget and unusually for all … Read More... about What’s George up to?

Why are HMRC so inefficient?

These days HMRC call us customers but alas they’ve yet to discover the … Read More... about Why are HMRC so inefficient?

It’s not always a bunch of Roses

Congratulations to anyone who may be intending to ‘pop the question’ over a … Read More... about It’s not always a bunch of Roses

Copyright © 2025 Iain Wallis | Terms of Use | Privacy Notice | Cookies Policy

Website by Internet Power | Online Portal

MENU
  • Home
  • About Me
  • Property Wealth Builder
    • Property Investor
    • Property Mentor
  • Tax Strategies
  • Keynote Speaker
  • My Books
    • Essential Tips to Avoid Property Taxes
    • Legally Avoid Property Taxes
  • My Blog
  • Contact