Now I know that the subject of tax is to some landlords what Dementors are to Harry Potter; a life-sucking force that yields unimaginable misery on the many. However, just like Harry, we shall conjure our courage, dispel the evil and know that tax is not to be feared.
If that metaphor was lost on you, then I’m not really sure what to say.
Rest assured, I have written this post to debunk the idea that tax isn’t all bad, and in the case of Serviced Accommodation, some tax knowledge can be a good thing.
Before I continue, I would like to make it clear that I am not a tax adviser and therefore any content within these posts is not advice. This content has been gathered from educational sources that have been relayed on for your information only. It is always recommended that you speak to a tax adviser in matters of tax planning so as to best understand your situation and deliver tax advice that is specific to you.
The subject of tax is huge and is quite frankly too large to include in one post. So, to simplify matters this post will serve as an introduction to property tax strategies only. Following this post I will endeavour to add complementary tax topics with more specific content that will hopefully be of benefit to you and your Serviced Accommodation business.
Now, it is important to state that unlike a buy-to-let property, which is classified as residential, Serviced Accommodation units can qualify as a business. That is why tax knowledge is so important. Many of the topics to be covered are only applicable to businesses and can save you a lot of money, if you know how to use it.
Even if you are not the one to fill out the self-assessment, it is useful to know the tax benefits of Serviced Accommodation so you can realise the full potential of your property and make effective and well informed decisions.
The main topics of discussion shall be:
- Section 24 (Part 2 of 7)
- Business Rate Relief (Part 3 of 7)
- Capital Allowances (Part 4 of 7)
- Roll-over Relief (Part 5 of 7)
- Entrepreneurs Relief (Part 6 of 7)
- Gift Relief (Part 7 of 7)
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