Tax Tips > Property and Loans

  • Stamp Duty on purchase of Residential Property. There is no Stamp Duty Land Tax to pay if the price paid by purchaser is under £125,000.
  • Rollover Property Gains  As mentioned in later tips, holiday rental properties are considered trading assets in certain circumstances. It is possible therefore to rollover gains from the sale of a holiday lets property against the purchase of another. Timing and letting criteria are critical for this to work.
  • Stamp duty: disadvantaged areas From the end of November 2001 there is no stamp duty to pay if you buy a property in certain "disadvantaged areas" up to a value of £150,000. A helpline (0845 603 0135) is available for people wanting to determine whether a property is in a designated area qualifying for stamp duty relief. The postcode of the property will be required.
  • What about the Garden Shed? Are you selling that second or third home and want to save tax? The garden shed and other fixtures and fittings are treated as wasting chattels for Capital Gains Tax, i.e. when you sell them no tax to pay. So why not ask your solicitor to allocate part of the selling price in the contract to these items. Make sure you seek advice regarding the new Stamp Duty Land Tax when considering these issues.
  • Tax Refunds from Holiday Homes! If you buy a property to let as a holiday home the tax man considers this to be a trade. If the rents you collect do not exceed the outgoings, bank interest etc, you can set the loss against your other income and obtain a refund. From 6 April 2012 losses can only be set against future profits from the same holidays lets trade.

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