Video:

Tax law and residential properties

Author: Chris Springett, James Kirk (yBC.tv)

Categories: Getting advice, Personal Wealth, Tax Planning
Tags: property, residency
Tax law for properties can be more complicated than people often think, as Chris Springett suggests in this TV Show.

Why people need tax law advice

A lot of people think it’s really straightforward, which often it is. If you own one property, you live in that property, you sell it, the relief’s available and so you claim the relief and it’s all very straightforward. The problems arise when you get something a little more unusual. So you have two residences, perhaps you have a property in the country and one in the city or you have a period of absence, perhaps you work abroad for a number of years, or finally you use your property as part of your business, so a workshop in there, an office that you’re using exclusively. And again that can cause issues for the relief. So it’s making sure that we manage those from the outset rather than trying to piece together things from the end. The legislation that provides the relief is in itself reasonably straightforward. The problem comes, trying to fit your facts into the legislation itself. That’s where the real difficulty starts and that’s why there’s a vast sway of case law on the matter, on the subject. And it’s navigating that case, although I think a lot of people, (a) perhaps just wouldn’t have the resources to do, and secondly, even then drawing conclusions from it can be very tricky.

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