We work with a varied range of property clients across the north east, from private individuals with property investments, landlords and architects to large property investment and development groups.
We offer a range of services to our clients in this sector, including audits, accounting, VAT advice, corporation tax, due diligence, tax planning on acquisitions and sales, special investigations and company secretarial services.
Will you be taxed on the sale of your home?
When selling your home, whether it’s your main or only place of residence, you would previously have been correct to assume that the sale would be exempt from Capital Gains Tax (CGT).
Recently though, HMRC has been challenging claims that property sales are exempt from CGT. The basis of this is a rule whereby when a property has been purchased with the intention of making a profit, the CGT exemption does not apply. The worrying aspect is that this is true of property sales by virtually every home owner in the UK! Previously, the rule has only been applied when the sale is very obviously for profit-only reasons, ie. when the property was never intended to be lived in. An example would be when the next buyer for the property has been lined up before the sale has been finalised.
There have lately been a worrying number of tribunal and Court cases in which HMRC has challenged claims that gains on property sales are exempt and where the decision has gone against the home owner. There is clearly a move towards assessing what constitutes ‘residence’ in terms of type and longevity, rather than simply establishing whether or not the property is a ‘home’.
If you are selling a property and would like advice on whether it may be liable to Capital Gains Tax, please call Martin Johnson, partner at UHY Torgersens, on 0191 567 8611.
In this highly legislated sector, we help to ensure that our clients are supported all the way by significantly reducing the burden of employment tax including Construction Industry Scheme compliance, VAT and corporate tax.
We have clients at every level of the construction industry, from trades people and building companies through to housing estate developers and commercial property developers.
UHY Torgersens’ tax experts use their knowledge of these sectors and their relevant tax and VAT issues to add real value to our clients’ businesses.
The next step
If you feel you would benefit from advice on any of these issues and would like to discuss the services we can provide for your business, please contact UHY Torgersens’ property and construction specialist.