Tax Tony

lindacd

Hi Tony

thanks for all the very useful information so far.

1. I have a property which I let (cos I could not sell it at the time of moving in with partner), the income I received during tax year 2005-2006 was £5950. The interest on my mortgage during this time was £7500. I have not been sent a tax return so should I request one, bearing in mind that I should not have any tax outstanding on this?

Many thanks.

Linda D

alice_NATALIE

I worked for the Department of work and pensions, Job office, for a short time and my Tax return requires PAYE ref. I don't seem to have any informatiion with this on, any ideas, i've tried Phoning pay dept but no one answers, Thanks, alice

alice_NATALIE

If you haven't lived in the property it is subject to capital gains if you made a profit from the sale regardless of you selling it under market value.

beaverman33_2

Hi Tony & other MSE-ers

My partner’s parents have just moved house to a property which is on a large plot of land in the West Country. They are proposing selling a portion of this land to us for development purposes in order that a new bungalow can be built. We are not professional property developers but do run a buy to let portfolio in the Midlands.

In order to raise the capital to fund the build we were going to take out a re-mortgage on our current residential property in Birmingham. Our Birmingham property would then be let out for the period of the build and we would temporarily live with my partners parents in the West Country.

We would obviously like to minimize the profit that we would loose to the Inland Revenue via capital gains tax and wondered what the best (legal) way of doing this is.

Being as our previous residential property in Birmingham is being rented out could we declare the new build bungalow in the West Country as our main residence upon completion and therefore be free from capital gains tax when it is sold. I have also heard that if a property is sold before completion then it is free from capital gains tax. Is this true? If so what is the legal definition of the completion date i.e. if an interior wall is left unpainted until the sale of the property does this count?

sdpking

Dear Tax Tony,

Can I offset previous year's losses (where companies have gone bust) against current or future year's gains. If so how many years can I go back?

Also if you receive assets that have been subjected to inheritance tax, would it be correct to assume that there is no additional capital gains liability?

Thanks for your help.

bluesky_2

I was a co-director of a small limited company from 2000 (and on PAYE)which was dissolved in late 2004, though I was abroad and not working from Sep 2003 - Oct 2004. I have been employed by another company and on PAYE since Nov 2004. I received a tax return in Dec 2006 for 2005-2006 just before I went on holiday so didn't complete it yet, then on return in Jan I received a demand for £200 in fines for 2004-2005 even though I'd not received a return form for that year and never before received statements for fines. Should I really still be filling in tax returns, and how can I prove they didn't ask for this £200 before now??? HELP!!!

trapped_in_high_interest

Hello,

My husband is self employed and we have paid the accountant for doing his tax affairs £150. I presume the accountant puts through the self assessment papers to the inland revenue. Do they then tell him how much tax we have to pay for last year?

Sorry to sound so ignorant but this is the first year of self employment and although we have engaged an accountant there does not seem to be much communication from them. We have sent them all the forms and all the invoices and receipts for expenses and they have charged us £150, now what happens??

Thanks for any advice

Confused

harrijon

Hi Tony,

From 1994, I was a freelance consultant, through my own (close) company but converted to employee with a favourite client, around 2004. I still have the company with very substantial retained earnings. This now brings in interest while I wind down the few remaining clients (down to a trickle)), all told amounting to just less than 10k a year. In the next company accounting year CT has gone to 19% but, as a higher rate tax payer, I do not want to pay myself from the company.

Until now, I have kept it going to consider new business ventures, probably with my brother and (at 58) consider a last fling before retiring. However, if I did want to wind down the company, what would be the best way to achieve this?

1 Annual lump sums into my SIPP and use up all the capital (but company cannot be run at a loss, can it?).
2 Dividends to my family as shareholders (same as above)
3 Employ daughter(s) to take care of the books and maintain the web site(s) with income only until I close company (they are currently students).
4 Wait until I've retired and on a lower tax band and then pay myself.

If I just shut the company, is there any way of taking out the money without any further tax liability? e.g. like shutting a family business.

Cruella_3

I inhereted our family home in 1994 when my husband died. I took out a BTL mortgage to allow me to buy another home for me and my kids and began to rent the original marital home out. I now wish to sell that house and buy another to rent out (bigger house) and wonder if you can tell me about capital gains tax. I know it is based on profit but can I "roll this over" into the new BTL house I am buying?

Cruella

I should make it clear, the original home is the one I rent out and have done since 1995. I took a BTL mortgage out on it and have continued with this to date. I am now selling this house and using the profit to buy another house with a new BTL mortgage. Can I roll over the profit and therefore the capital tax gain to the new house or should I arrange to pay this when I sell?

Cruella )

Anastasis

I am shortly going to be starting a limited company with a friend of mine.

We have already done a small amount of work (about £3000 worth) beforehand during the last 2-3 months.

Please could you tell me if:

(a) can we declare the earnings as for the company when it is formed?
(b) can we deduct business expenses incurred prior to the company being formed (e.g. sorting out a website, a small amount of advertising)?

Thanks in advance for your help with this.