If you're thinking about selling a property, shares or another valuable asset, one of your biggest concerns may be how much Capital Gains Tax (CGT) you'll have to pay. The good news is that there are several completely legitimate ways to reduce your Capital Gains Tax bill. The key is planning ahead. Once a sale has completed, many opportunities are no longer available. In this guide, we'll explain some of the most common ways to reduce Capital Gains Tax legally in the UK. Wha

With the cost of living continuing to put pressure on household finances, many homeowners are considering taking in a lodger to generate additional income. The good news is that the Rent-a-Room Scheme may allow you to earn up to £7,500 per tax year tax-free. could your spare room make you some money? What Is Rent-a-Room Relief? Rent-a-Room Relief is a tax relief available to individuals who let furnished accommodation in their only or main home. If your gross rental income is

Inheriting a property can be an emotional and challenging experience. Alongside dealing with the administration of an estate, many beneficiaries are understandably concerned about the tax implications of receiving and eventually selling an inherited property. One of the most common questions we receive is whether Capital Gains Tax (CGT) is payable when a property is inherited. The answer is usually no. However, Capital Gains Tax may arise later if the property is sold for mor

Many homeowners assume that because a property was once their main residence, there will be no Capital Gains Tax to pay when it is sold. Unfortunately, the position is not always that straightforward. If you have moved out of a property, let it to tenants, inherited another home or owned multiple properties during the period of ownership, a Capital Gains Tax liability may arise when the property is eventually sold. Understanding the available reliefs and reporting requirement

Many landlords are unaware that rental income must be reported to HMRC, particularly where the profits seem relatively small. Unfortunately, even modest undeclared profits can quickly lead to significant tax liabilities, interest, and penalties over a number of years. Consider the following example: A taxpayer earning £60,000 per year also receives rental profits of £5,000 annually from a property. The rental income is not reported to HMRC for five tax years. As the individua

Discovering that tax has been underpaid or income has not been declared to HMRC can understandably cause a great deal of concern. In many cases, however, the situation can be significantly improved by taking proactive action before HMRC opens an enquiry or compliance check. The timing of a disclosure is often just as important as the disclosure itself. An unprompted disclosure can substantially reduce penalties and demonstrates to HMRC that the taxpayer is willing to cooperat

The rise of online marketplaces, freelancing, content creation and flexible working has resulted in more people than ever earning additional income through a side hustle. Whether you sell products online, offer services in your spare time, create content on social media, or undertake occasional freelance work, it is important to understand when this income needs to be reported to HMRC. What Is a Side Hustle? A side hustle is any activity undertaken outside your main employmen