Few people realise just how many tax breaks are available with intelligent use of residential/holiday properties.  The important principle is to widen your focus.  Property can help with tax in areas that at first glance may seem unrelated and Target is expert in finding the right strategies.  Here are a few of our top tips.  Call Sherena Glanton on 01225 486 300 if you would like to find out more about how we can save tax in your own circumstances.

Home mortgage interest
As a married couple, you can make your home loan work harder – especially when one of you runs a business or owns a buy-to-let property.  There are ways of gaining additional tax relief and a buy-to-let property with equity in it can also be helpful.

Cost of university/cohabiting couples
The taxman will help with university costs is possible if you can invest in a property for your child to live in.  With care, many people can save £2-3k p.a. in income tax and you’ll have a property investment too.  The same idea works for cohabiting couples who pay tax at different rates. 

Second homes
Sell your main home and you pay no tax; sell a second home and you could pay 18% Capital Gains Tax.  It’s easy to avoid this if you plan ahead but you need to act at the right time.

Holiday lets
If you don’t want to (or can’t) sell a second property, set it up as furnished holiday let.  There are conditions to meet but tax advantages are substantial, with access to Entrepreneurs’ Relief on sale and also with Inheritance Tax benefits after two years.

Call Sherena Glanton on 01225 486 300.