HMRC Restricts Non-Statutory Clearance Process
No more safety net ...
POSTED BY HELEN BEAUMONT ON 29/06/2018 @ 8:00AM
In a previous blog post, I advised that incorporating a property letting business could benefit from HMRC's Non-Statutory Clearance Process. However, this has now been withdrawn ...
HMRC's Non-Statutory Clearance Process has been withdrawn!
photo by 'gleren meneghin' on unsplash
The new rules on interest tax relief for individuals and partnerships started to bite in 2017. Many private landlords incorporated and transferred their properties into the new company.
"If your property portfolio does not qualify as a letting business, you'll get hit with Capital Gains Tax!"
Landlords used to be able to get HMRC to use their Non-Statutory Clearance Process to be sure of their tax position before any action was taken. Unfortunately, the safety net has been withdrawn.
I'm not sure as to the reason for this. Is it simply a lack of resources at HMRC? Or is it the realisation that this tax relief was being used in ways that the Government hadn't anticipated.
So, if you're thinking of transferring your property portfolio into a limited company, you really do need to seek professional tax advice now as getting it wrong could see you hit with a 28% tax bill on the capital gain from the date of purchase of each property to the date it was transferred into the limited company.
"Would you like to know more?"
If you'd like to find out more about how the withdrawal of the Non-Statutory Clearance Process affects you, do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.