Property Tax Advice

Moving your rentals into a company? Check the bill before you pack.

The idea of a lower tax bill is appealing. The cost of getting there can be rather less exciting.

In our new guide, we use an illustrative example: £40,000 to transfer a portfolio, with an expected £8,000 annual tax saving. That’s a simple five-year payback, assuming those savings continue.

But the £40,000 is needed now.

Future savings won’t pay today’s transfer costs. And a five-year payback may look very different depending on whether you’re growing your portfolio or planning to retire soon.

There’s no one-size-fits-all answer. Start with your plans, then work through the tax, finance and cash needed to make the move.

Read the full guide on our website (link down in the comments👇)

Need the grass kept down? A few sheep might do the job.

Need the paddock to qualify as non-residential for SDLT? That is a very different question. 🐑

In a recent tribunal case, the owners of a £1.81m farmhouse argued that their one-acre paddock had a separate agricultural function because a neighbouring farmer had grazed sheep there for years.

The arrangement involved:
• around 6–12 sheep at a time
• intermittent grazing
• no rent being paid
• the added benefit of keeping the field maintained

The tribunal accepted that the grazing was part of a genuine farming business.

But it still was not enough to make the paddock sufficiently separate from the home.

The arrangement was described as a “barter of convenience”, and HMRC’s residential SDLT treatment was upheld.

The difference? An additional £48,450 of SDLT.

The lesson is simple: calling land agricultural, or allowing commercial grazing, does not automatically make it non-residential for SDLT. The full facts around use, control, access and the relationship with the home all matter.

Full case breakdown live on our site now - link in the top comment👇.

Property investing isn't just about what you MAKE.

It's also about what you KEEP.

Investors naturally focus on:
• Purchase price
• Rent

• Finance
• Refurbishment
• Cash flow
• Potential value

But tax is part of the equation too.

And with the Autumn Budget approaching, there are some important areas property investors should be watching.

On Friday 4th September at 2:30pm, I'll be speaking at the Virtual Property Exhibition on:

The Budget 2026: The Tax Changes Property Investors Need to Watch

I'm joining 8 other industry experts for a full day of live online property training.

And it's completely FREE.

👉 Grab your FREE ticket here: https://property.isrefer.com/go/VPE/Barrett/

£2 in property value could potentially push a home into an entirely new council tax band.

Under proposals being considered in Scotland, homes valued at more than £1 million could move into a new Band I from April 2028.

Using the Scottish Government’s current illustrative figures:
• Average Band H charge: around £4,050 a year
• Proposed Band I charge: around £4,770 a year
• Difference: approximately £720 a year

And for homes worth more than £2 million, the proposed Band J increase could be considerably larger.

Importantly, this would be based on the property’s estimated open-market value at 1 April 2026, not simply its existing council tax band.

The figures are illustrative and the final rates, valuation process and appeal arrangements have not yet been confirmed.

But for anyone with a Scottish property around the £1 million threshold, it is definitely one to watch.

We’ve broken down what is being proposed, who could be affected and what happens next in our latest guide.

Read the full article on our website - link in the comments 👇

Handing over the keys to a family member can come with more tax strings attached than you might expect.

Income Tax. Capital Gains Tax. Inheritance Tax. Market rent. Commercial terms. They can all matter.

Renting to family is perfectly legitimate, but the tax treatment can change depending on how the arrangement is set up.

Charge full market rent on normal commercial terms and the usual property income rules can broadly apply.

Charge reduced rent, or no rent at all, and your expense deductions may be restricted.

Then there are the strings that can appear later.

Selling or gifting the property to that family member can create Capital Gains Tax issues, while Inheritance Tax rules can also become relevant if ownership changes but someone continues to benefit from the property.

So the question is not simply:

“Can I rent to family?”

It is:

“What tax strings are attached to the arrangement?”

Our latest guide breaks down what landlords and property owners need to consider.

Read the full article on our website, link in the comments 👇

Could your spare room earn up to £7,500 tax-free?

Potentially, yes - but only if the Rent a Room Scheme conditions are met.

This is one of the most talked-about property tax reliefs, but it is also one of the most misunderstood.

A few key points:
• the £7,500 figure is based on gross receipts, not profit
• it normally applies to furnished accommodation in your only or main home
• it is not a general allowance for any rental property
• tenants can sometimes qualify too, if their tenancy allows it
• if your receipts go over the limit, you may need to compare the normal method with the Rent a Room method to see which gives the better result

So if you are thinking about taking in a lodger, or already rent out a room in your home, it is worth checking how the rules actually apply to your situation.

Our latest guide explains the main conditions, common misunderstandings and the tax points to watch.

Read the full article on our website - link in the comments 👇

A garden office might look like one project, but for tax it is not always one single expense.

That is the key point behind this image.

The building shell, desk and furniture, computer, electrics, and heating or air-con can all fall into different categories and may need to be looked at separately.

So if you are planning to build a garden office for your business, the real question is not just:

“Can I claim it?”

It is:

“What exactly am I claiming?”

That matters even more if you run your business through a limited company, or if the office is being built on land you personally own.

Our latest guide explains the main tax issues business owners should think about before going ahead, including:
• construction costs
• capital allowances
• VAT
• benefit-in-kind risks
• Private Residence Relief

Read the full article on our website - link in the comments 👇

A legal bill doesn’t automatically mean a tax deduction.

Two property businesses could pay almost exactly the same solicitor’s invoice and end up with completely different tax treatment.

Why? Because it matters whether you’re holding property as an investment or buying it as part of a development trade.

For example:
🏠 An investor’s legal costs for buying a rental property are normally capital costs rather than a deduction against rental income.

🏗️ A developer’s acquisition costs will usually form part of the trading stock costs and reduce the profit when the development is sold.

And if the deal falls through? The difference can become even more important.

We’ve broken down purchase costs, sale costs, failed deals, tenancy agreements, planning and due diligence in our latest guide.

Read the full article on the Property Tax Advice website (link in top comment!👇)

“Don’t worry, we’ll get HMRC clearance.”

That sounds reassuring. The problem is, when it comes to Section 162 Incorporation Relief, it can give completely the wrong impression.

There is no statutory HMRC clearance procedure specifically for Section 162.

In certain circumstances, HMRC may be prepared to give its view through the Non-Statutory Clearance process, but that is very different from HMRC formally approving your Section 162 position in advance.

And from 6 April 2026, there is another important distinction: Section 162 Incorporation Relief must be claimed through the transferor’s Self-Assessment return for relevant transfers.

A claim is not clearance.

What really matters is whether the statutory conditions are met and whether you have the evidence to support that position.

We explain exactly what “HMRC clearance” does - and doesn’t - mean for property incorporations in our latest article. Click the link in the comments👇

That’s a lot of paperwork… and unfortunately, it can all matter. 😅

If you’re thinking about incorporating your property portfolio and claiming Section 162 Incorporation Relief, being able to show what you actually do in running the business is important.

That evidence can come from all sorts of places: diaries, emails, tenant correspondence, repair invoices, compliance records, bank statements, rent schedules, contractor notes and more.

The good news is you probably already have much of it. The important part is knowing what matters, what to keep and how it supports your position.

Our latest article explains the records property entrepreneurs should be keeping and why they can become so important when considering Incorporation Relief.

And if it all feels a bit overwhelming, we can help you work through it.

Read the full guide on our website, link in the comments👇