The autumn Budget will take place on 27 October 2021. Rumours are that the Chancellor will announce a ‘technical’ Budget in his speech. We imagine the devil will be in the detail.
|Mixed-use headaches and hurdles|
Three cases, Hyman, Pensfold and Goodfellow, were unsuccessful in claiming a mixed-use classification at the First Tier Tribunal. The key point of contention was to determine whether the land sold together with the house was, or formed part of, the garden or grounds of the house. Read full article
|Option to Tax ("OTT") backlog|
For the purposes of VAT, the term ‘land’ includes any buildings or structures permanently affixed to it. Once a taxpayer has Opted to Tax (“OTT”) its supplies in relation to the land or buildings will normally be standard-rated and it can usually recover VAT incurred in making those supplies. Read full article
|VAT savings for renovations|
If work is carried out to an existing building VAT is usually chargeable at the standard rate (20%). However, some taxpayers may be eligible to be charged at the reduced rate (5%) if renovating or altering an eligible dwelling that has not been lived in during the 2 years immediately before the work starts. Each purchase should be considered on its own merits before the reduced rating can be applied. Read full article
|CGT considerations before demolishing|
Due to the wording within Capital Gains Tax (“CGT”) legislation, some taxpayers may consider triggering a deemed disposal when demolishing their main residence. Demolition in this context means removing all but the foundations of a property before erecting a new dwelling. Given the complexity of the issue each case should be reviewed on its own merits by a qualified adviser. Read full article
Navigating around the different taxes can be a difficult task. If you would like to discuss your current situation or find out more information about one of the topics mentioned above, please contact one of our team who will be happy to assist you.