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Carrying forward losses for furnished holiday let
Hi. My wife and I have a furnished holiday let which we renovated and furnished during Covid but only started renting in the last tax year. This means it effectively made losses for the 20-21 and 21-22 because we had no rental income but were spending money on it. I didn't declare those losses on my tax returns for those…
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Tax Returned Limited
Probably not the right board to put this on but wasn’t sure where it fitted. It seems my son has inadvertently signed up to Tax Returned Ltd acting as an agent for him on his tax account. This was done through a Facebook link asking are you entitled to a tax refund. He was out of work and skint at the time - the rest is…
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Can PETs still be liable to IHT after 7 years?
Browsing the IHT400 Notes issued by HMRC, on p22 in relation to "Earlier Transfers" it states: "This part of the form is about any gifts made by the deceased (the donor)in the period before the gifts shown on pages 2 to 4 of the IHT403. Towork out whether tax is payable on any gift, the law says that we must addit to any…
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CGT on part owned inherited property
My first post in this forum, so please go easy on me. ;-) I part own my elderly father's property as joint tenants 50% each). He lives in the property and I own and live in a separate property. His property was part owned 3 ways with me, my late mother and father but when she died a few years ago, her share transferred to…
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Timing of 7 Year Rule for Gifts for IHT
I’m intending making a sizeable cash gift to a relative. I hope to survive the 7 years making this gift exempt from IHT! However, if I don’t, when is the 7 year period calculated from? Is it from the precise date of the gift or is it just considered in the relevant tax year?
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Capital Gains Tax puzzler
I am in the process of selling my only owned property and have a query about capital gains tax. I have owned the house for 9 years and bought it for £174,000 in August 2014. I lived in it for 3 years until August 2017. I moved overseas and rented it out. I returned in June 2021 but continued renting it out as I was living…
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CGT calculation
How would you calculate CGT on the following transfer of equity? Current owner A bought the property for £100,000 (including buying costs) and has never lived in it. Current owner A is now adding new owner B by transferring ownership to new owners A and B where A is transferring a 40% share to new owner B for £50,000…
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Gifting money etc to children/etc
Hey. I have an idea about IHT. We are a married couple and will officially retire next year but we both left work several years ago. We live off the income of 2, BTLs Inc the BTLs, the house we live in and a healthy amount of cash, I currently estimate our estate to be worth about 1.2 to 1.3 mill. We are married and did…
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Higher rate stamp duty
Does higher rate stamp duty apply in the following transfer of equity? Person A owns more than one property and transfers equity to person B (a first-time buyer non-spouse) for chargeable consideration of at least £40,000. Person B is liable to stamp duty at the additional rate of 3% because Person A will still be an owner…
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Childcare / 30 hours free / earning over £100k
Hi, I'm wondering if someone can help. In a bit of a panic. My salary is £125k and I have always contributed to my SIPP to make sure my net adjusted income is less than £100k. I have already submitted my self assessment tax return for 2022/2023. I have just been advised by my employer that I have received a benefit in kind…
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Passive income - class 2 NI contributions?
I wrote some books some time ago and currently receive around £1-£2k pa royalties from these but am no longer writing. I report this as self-employed income alongside my main job. I will shortly be retiring from my main job and am looking for the most cost effective way to purchase future NI years for state pension…
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Simultaneous tax code refund + deduction?
Hello, You may have seen that the government are looking at having HICBC being collected via tax codes, rather than through a self assessment, which is very welcome. In the absence of having submitted a self assessment, how would HMRC handle a situation where say you were due £150 (due to HR pension tax relief), but also…
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Help: I didn't file 2021 tax return, have £1600 penalties
I was a sole trader until Nov 2019, filed 2020 tax return, then moved back to my home country (EU). I must have done sth wrong with closing my sole trader operations, as HMRC assumed im still in the UK and generating income. I have contacted HMRC so they don't chase me for later tax returns, but advised me to file 2021…
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Capital gains tax when someone dies
Really hoping that someone can help me out here and put my mind at ease. If someone dies and leaves a property valued at 100k but property sells for 120k. There are no other assets and to keep it simple, lets say no costs involved with selling. So a gain of 20k. There are 2 executors named on the will who are brothers. One…
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Tax rebate letter from 2019
I bumped into somebody who moved into a flat I was staying at (from 2013-2019). He let me know there was some letters for me that arrived just after I moved out in 2019. I picked them up yesterday and one of the letters is a tax rebate from my work. The letter is dated 2019. Im guessing the cheque is no longer valid, but…
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rental property income tax/CGT advice please
Background: - I bought a flat 15 years ago and lived there for the first 2 years. I was single at the time I bought it (and moved out).The property is under my name only. - I let the property since then (so roughtly 13 years) - I am a higher tax payer (40% band) and am well above the threshold. - I may want to sell the…
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CGT query
A property purchased in 1992 by two owners as tenants-in-common in unequal shares, is now, through inheritance, owned by five people, one of whom lives in it. The property was not bequeathed in a will as such, but formed the main asset of a grandparent, then a parent, but was not sold because a grandchild ( a vulnerable…
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Holiday Vouchers vs Holiday paid by company BIK
Hi everyone :) I'm hoping that you can help me. I have earned a bonus from work l could, have it paid through the normal payroll system. However, because l intended to use the money for a family holiday . The accountant at work suggested that the company could arrange book and pay for the holiday on my behalf. The value…
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CGT on sale of French Holiday home for UK non tax payer
I have recently sold a jointly owned French holiday home and understand that my spouse and I are liable for UK CGT. I have included my share of the CG in my SA online return but my spouse is a non taxpayer due to being below the BRT threshold and is not required to file a return each year. I understand that she will be in…
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Self assessment: how to declare income from a life interest
My mother in law has a life interest in the income from a trust fund. The fund is a capital sum held by trustees in a bank account and the income is the bank interest which is paid directly to my mother-in-law. Her accountant has previously just declared this as her income but as she has now asked me to help her complete…