If you own your own home then you have a significant investment, even though you might not think of it in that way. Many people buy additional properties in the UK and abroad, either as holiday homes or as investments to rent out. There are many issues that you need to consider. Our specialists are available to help you to reach the best solution for your circumstances. To begin with you need to be aware of the issues that could present you with problems ...or opportunities!

your home

Buying your home
Your home is probably your most valuable asset, yet many people do not seek financial advice when buying a new home. You need to consider very carefully the many varying offers being made by banks and building societies and also consider the practicalities of what you can afford to pay. This can all be daunting so allow us to help you to understand what the best options will be for you. We will be able to recommend the best type of borrowing arrangement for your circumstances while identifying how you can achieve the greatest tax relief.

Letting your home
Letting all or part of your home can be a good way of covering some of the running costs, but it can lead to income tax and capital gains tax bills. This is further complicated if you are living abroad and the house you are letting is in the UK. There are also complications if the house is a holiday property abroad. We firmly recommend that you take thorough advice before embarking on any such ventures.

Working from home
If you work from home you may be entitled to claim tax relief on some household expenses and if you are a “homeworker employee” your employer may reimburse reasonable additional household expenses. Then it becomes complicated! There are issues surrounding tax relief, some of the calculations are very complex, and when you sell the property it may suddenly have become subject to capital gains tax. This is not an area to wander into lightly and we recommend that you take advice as soon as possible.

Selling your home
Selling your home and / or garden may appear to be straightforward but you can end up with an unexpected capital gains tax bill in some cases.

your second home

Whether it's a first home or a second home, most of the issues that arise are the same.  But raising finance for a second home can be much more complicated. We can guide you through the process and arrange for you the most suitable mortgage.

When you sell your home, any gain is usually exempt from capital gains tax as you are entitled to a tax exemption for your “principal private residence”. However if you have more than one home, including for example a holiday home, you can get exemption for only one home. Any gain on a second home will be taxable. It is then a question of which of your homes is your principal residence. This is complex area and one in which we are able to give you specialist help.

developing and investing in property

There is a distinction between developing and investing in property. For tax purposes, profits on development are taxed as income. Income from investment is also taxed as income, but capital gains on investment property are taxed as capital gains. These distinctions can significantly affect the amount of tax you pay. There are also subtle, but important, differences between the way development profits and investment gains are calculated.

We strongly recommend that you take professional advice when you are involved in either of these areas so that we can steer you through all of the tax complexities.

We also recommend that property should normally form part of a balanced investment portfolio. You should always take professional advice, to be sure that you see the full picture and choose the best investment strategy for you.