In recent years many people have preferred to invest in property rather than many other traditional investments such as pensions, cash or quoted shares. People have always felt “bricks and mortar” have provided a solid investment and in the long term this has been true - although there have been times when property prices have been extremely volatile and people have lost money as well as made it.
However, we often find it surprising that many people do not consider the tax aspects associated with owning and renting property. By simply taking advice about the deductability of certain items of expenditure or how you arrange any loan finance, you can maximise your return and minimise your tax. We will do this as part of our tax return service but more importantly, we would suggest you see us before you purchase and let the property to make sure you are doing things in the most tax efficient way.
If you are selling a property there are capital gains tax issues and it is possible to reduce capital gains tax significantly if the appropriate reliefs are claimed. Also, because if its value, property is often key to a successful tax planning strategy – whether during your lifetime or after your death.
If you own an investment property or you are thinking about purchasing one, please contact Mike Briggs. You can phone Mike on 01423 564446 or email him at email@example.com.