Written by Ray Coman
For many people a property will be the most valuable possession. The tax implications of property ownership can be significant. When purchasing property, stamp duty land tax will apply, and joint ownership with a married or unmarried partner can present additional exposure to SDLT. Where a property is owned a let a potential liability arises to income tax although opportunities arise for reducing this tax, where a property is jointly owned, for instance by married partners. On eventual sale of a property which is not a person's home gives rise to capital gains tax. In some cases where a property was once a person's home, principal private resident's relief will be available to mitigate capital gains tax. Different structures, such as companies, partnership and trusts can be used to hold property for both tax and non-tax reasons. Finally on a person's death, inheritance tax liability can arises on what is often a substantial part of the estate.At every turn in a property transaction a liability to taxation arises. However, careful planning can help to mitigate or even eliminate this exposure. Coman & Co have specific experience in the area of property taxation and are well placed to advise on your situation.