Stopping tax bills from going through the roof
10/01/2007

At a time when residential property prices have never been higher, the importance of maximising vendor-value has never been greater.

While the knowledge of estate agents on the housing market is unquestioned, they are understandably less confident about the technical and financial complexities of main residence capital gains tax relief.

Keeping tax bills to the minimum represents an enormous wealth-creating opportunity, increasing the proportion of the sale price that goes to the vendor, rather than the chancellor. An effective way to make the most of the available tax exemptions is The DTE Payroll & Tax Centre's tax brief on capital gains tax reliefs for principle private residences.

The brief consists of more than 15 A4 pages (plus several appendices with worked examples) covering pitfalls and opportunities for taxpayers with more than one residence, large gardens, or for people contemplating development projects in their grounds. It is written in highly accessible, layman's language and deals with the issues likely to be encountered on a day-to-day basis.

Other subjects covered in this comprehensive guide are: tax reliefs relating to marriage and divorce, business use, development gains, outbuildings, letting reliefs, the position of widows and widowers, and property exchanges.

"The thrust of the legislation is to give exemption from tax on gains resulting from the sale of the vendor's main or only residence, and is therefore an extremely valuable relief, especially in light of the rapidly rising housing market in recent years," explains DTE Payroll & Tax Centre director Mervyn MacDonald.

"While this generous exemption is often straightforward, it is important to maximise relief in more complex cases, for example where there is more than one property owned at one time, or where there are periods of non-occupancy, as well as transactions involving properties with land exceeding the standard half hectare, which qualifies for automatic relief."

This publication has recently been updated to September 2006 and provides a valuable resource for any agent dealing with residential property. A PDF version is available by email at a cost of £15. For further information, call Karin McDiarmid on 0161 767 1285, or email kmcdiarmid@dtegroup.com

[back]