Properties

Question 1

What drawbacks are there with residential property?

Answer 1

Illiquid
Needs to be managed
Void periods
Stamp duty on second property

Question 2

What property produces lower yields

Answer 2

Larger property

Question 3

How is SDLT handled?

Answer 3

Payment self-assessment but handled by a solicitor who does the conveyancing.

Tax is due 14 days from the effective date of the transaction

Rate dependent on value of the transaction. Higher = higher %

Question 4

How much can expenses on property be?

Answer 4

25%

Question 5

What is SDLT replaced by in Scotland

Answer 5

Land and Buildings Transaction Tax (LLBT)

Question 6

What is SDLT replaced by in Wales

Answer 6

Land Transactions Tax (LTT)

Question 7

What doesn’t apply in Wales?

Answer 7

First-time buyer stamp duty exemption

Question 8

What is rent room relief?

Answer 8

Gross rent bellow £7500 per annum is exempt income tax if renting part of thier house.

Question 9

How is room relief worked out if above £7500

Answer 9

The landlord gets a choice
Taxed on a normal basis (income leas expenses, no room relief)
Taxed on amount above limit with no expenses deducted.

Question 10

How would room relief work for a sub-let?

Answer 10

Both the owner and tenant will have £3750 exemption.

Question 11

What is property income allowance?

Answer 11

There is no tax when income is below £1000 before deducting expenses.

Question 12

What CGT is paid on housing

Answer 12

18 or 28% unless primary residence.