For many people, owning a holiday home is a major aspiration. Having a place to enjoy for leisure and recreation purposes has definite appeal, and demand for UK holiday homes has significantly increased over the last 18 months, in light of the COVID-19 pandemic. However, owning one may have Inheritance Tax (IHT) and Capital Gains Tax (CGT) implications which should be considered.
Whether you are buying a property alone or with another person, purchasing your first or your fifteenth home, planning on living in it or letting it out: whenever you acquire property, you should consider whether you need to make or update your Will as a result.
SDLT is a tax on land transactions in England and Northern Ireland and has been with us for over 16 years – it replaced “stamp duty” which was a tax on documents. Scotland and Wales have their own land tax regimes. Some of the rules are extremely complex and even the Revenue have been known to get their guidance wrong.
Our conveyancing teams work closely with our Family team when it comes to advising or dealing with the family home. This may relate to the protection of rights where one party is not on the title of the family home, dealing with a transfer of equity or sale or advising on other aspects such as Stamp Duty Land Tax.
David Lunn, Managing Associate at TWM Solicitors outlines the importance of declarations of trust.
There has been much in the national press over the course of many months regarding the Government’s plans for the system and the majority of articles published in the media have been outcries at the “murkiest and most lucrative corner of the residential market: the leasehold system” which often highlight the most extreme cases of unfair leases that allow landlords to charge exorbitant ground rents, service charge and maintenance contributions.