Individuals: Renting, Investing, Trading
1. Investing or trading?
- What is trading?
- Land transactions — investing or trading?
- The badges of trade
- Stamp duty — multi-unit purchases (s 31E, 83D, 83E, 83F)
- Local property tax (LPT)
- Residential Zoned Land Tax (RZLT)
- Case study
2. Investing in property
Rental income:
- Calculation — interest — unpaid interest
- RTB — Section 23/50 — 372AP(8)
- Pre-letting expenses
- Premiums on leases
- Wear and tear allowances — What is plant? What are repairs? What are improvements?
- Farm land leasing exemption
- Rent-a-room relief
- Acquiring through pension fund
- Non-resident landlord — authorised agent
- CAT — CGT offset
- Transfer of site from parent to child
CGT:
- Disposal, part disposal, capital sum derived from asset
- Proceeds — Acquisition cost — Indexation — Time of disposal
- Market value rules — Enhancement expenditure — Losses
- Compulsory purchase — Compensation and insurance
- Seven year exemption — Residence exemption
- Development land — Capital allowances and s 23
- Leases — Tax clearance — Foreign tax credit
3. Trading in land or buildings
- Build to sell, buy to sell
- Allowable deductions
- Commencement rules
- Transfers to and from trading stock
- Valuation on cessation
- Profits from land dealing
- Debt forgiveness
- Case study
4. VAT fundamentals
- Property development — no registration threshold
- Sale of property — checklist — when does VAT apply?
- Development of immovable goods — checklist
- Fixtures and fittings — VAT
- Lettings — Option to tax (OTT)
- Capital Goods Scheme (CGS)
- Case study
Companies: Renting, Investing, Trading
5. Incorporating a rental portfolio
- CGT — possible solutions
- Transfer of business to a company
- IREF, REIT structures
- Case study
6. Rental v trading income
Avoiding rental surcharge:
- Undistributable income
- s 434(3A) election
Other topics:
- Group relief
- Trading income — hotels, B&B, AirBNB
- Provision of emergency accommodation
- Chargeable gains — allowable losses
- 10% CGT rate
- HoldCo exemption — s 626B
- Stamp duty — group (s 79) and reconstruction (s 80) relief
7. Trading in property
- Transfers to and from trading stock
- Profits from new build property — 12.5% rate
- Sale of non-fully developed property — 25% rule
- Relevant contracts tax (RCT) — conditions, tips and traps
- Case study
8. VAT — Practical issues
- Transfer of business relief (TOB)
- Receivers, liquidators and mortgagees in possession
- Joint option to tax — right thing to do?
- Waiver of exemption — timing
- Pre-contract VAT enquiries (PCVE)
Q & A session with the panel