Lease Premiums – capital or income? – a statutory interlude

 CGT, Income Tax, Property Tax, Statutory Interpretation  Comments Off on Lease Premiums – capital or income? – a statutory interlude
Nov 132013
 

The following is a statutory analysis of the position when a lease of land is granted for a premium. We have already seen how this works in previous articles on the Lease Premium Rules. The first article was about how the rules operate to modify the capital gains treatment of the landlord, and the second article concerned how the landlord could use these rules to his advantage in claiming tax relief for the property.

However, these two articles raise some important questions concerning the nature of the premium and how it is taxed. Why should a landlord receiving a premium be taxed under the capital gains legislation, and a property trader be taxed under the income tax rules? More importantly:

“How does this result come about under the legislation?”

We shall discuss this more fully below. Continue reading »

Property Tax – How options can be used to defer tax on a property sale

 CGT, Property Tax  Comments Off on Property Tax – How options can be used to defer tax on a property sale
Mar 162013
 

As we approach the end of the tax year – and hopefully the start of spring – a lot of people will go into frantic mode as they discover that they may need to do some last minute tax planning.

It happens every year. In the next few weeks, expect your local friendly bank and other financial institutions to send you an invitation to invest in their ISA product, and even closer to the deadline, expect to see adverts telling you that you can even apply online. The things that our respected banks and building society do to get an honest crumb!

But one sort of tax planning actually depends on delaying, rather than acting early.

(This article can be downloaded in pdf format at Academia.edu.)

Continue reading »