Property Tax Accountant Services

The tax rules on residential property have changed considerably in recent years, making ownership of second homes and buy-to-let properties even more complex and in some cases, attracting punitive rates of tax.  

Our advice on property taxation will make sure you’re not caught out by unexpected tax charges and help you stay tax-compliant. Our property tax accountant services will keep you up to date on the latest tax situation, with all the accurate advice and practical information you need to make cost-effective and rewarding property portfolio decisions. 

Taking a long-term view and creating a portfolio to benefit your family can be one of the most tax-efficient routes to owning property, reducing your exposure to IHT and income tax. For example, by setting up a company with your family as shareholders, you can reduce the tax payable by using the personal allowances and lower tax bands of family members who earn less than you. You can use the dividend allowance when you pay dividends, and it is easier to transfer shares in the company to family members rather than having several family members own the same property directly.  This provides the opportunity to undertake IHT planning and reduce the IHT payable on your estate. 

The drawback is that this structure is most tax efficient if the majority of the profits and gains are kept within the company to benefit younger family members, as there’s a potential double tax charge when you take income from the company, particularly following a property sale. If the income is likely to attract higher tax rates or you’re thinking of selling a property from your portfolio, we suggest you talk to us first. 

If you’re buying properties to rent them out, setting up a limited company means you will pay corporate tax, at a lower rate than income tax. We can advise on the available tax reliefs and claims available, to increase your post-tax income. 

For example, if you are renting your properties, tax on your rental profits can be reduced by claiming expenses for repairs (but not improvements), deducting mortgage interest if applicable, claiming for use of your home as your office and use of your car in relation to managing the properties. 

Finally, if you have had your rental properties for some time, consider having them revalued. They may well have gained in value, which could be good news if you’ve mortgaged your properties when acquiring them to build your portfolio. A higher value will reduce the loan’s value and may qualify you for a lower interest rate and less outlay.