For all our clients and friends and contacts in London, Croydon, Wimbledon and around the UK, these property issues from a Chartered Tax Accountant will help you

Usually UK tax law discriminates in favour of married couples or partners who have entered into a formal Civil Partnership.

Not so with the principal private residence relief (PPR).

Married couples or civil partnerships are only allowed a single PPR and if more than one property is owned by the couple, any election to say which property should be considered their PPR, must be made jointly. However, this does not apply to unmarried couples.

If an unmarried couple own two residences then maximum relief can be obtained by each owning one property outright rather than owning the two properties jointly. However, it is advisable that each person make an appropriate election in favour of the property they own.

Timing of elections is important so affected couples should seek tax advice as soon as possible.

If you are based in the UK and wish to have the best tax advice from a Business and Tax Chartered Accountancy Practice based in Central London, Wimbledon and Croydon,then call us today.

Because Gordons owns over 40 properties himself he is well placed to help you save tax in the short and long term.

Flipping 'eck
 
You are no doubt aware of the use of the word "flipping" in relation to avoidance of capital gains tax? Remember the MPs making assertions that holiday homes and other let properties had been occupied as their part-time home, electing for it to be the principal private residence, and sometimes for just a week or so, in order to qualify for significant tax advantages when those properties were subsequently sold?

Well it seems that HMRC have started brushing up on their investigative skills in this area and taxpayers using this ploy will need to have more evidence than simple assertions to substantiate their claim - HMRC will need hard evidence that you have actually occupied the second property as your home.

This evidence could take the form of:

• Council tax and utility bills for the property, if you claim that you were in residence over a winter period make sure that the utility bills support this.
• Invite the local policeman or vicar round for tea, someone HMRC will believe if they are asked to support your claim.
• Change the correspondence address with your banks.

And so on.

It is likely that future claims and elections to have a property considered to be a PPR will be challenged; have your evidence ready.

If your business is in London, Croydon, Wimbledon or around the UK, then this tip can save you some tax in the right circumstances. Call Gordon D'Silva on 020 8241 3000..

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