Property Tax Essay Example | Topics and Well Written Essays - 3000 words

Property Tax - Essay ExampleAssuming that David is having more than home in UK, assuming that David new property at 12, Mudchute Court is second property owned by him or one of the many properties he owned, then, for reducing his crownwork gain tax, he can claim the following as a deduction from the capital gains earned on the disposal of 12, Mudchute Court namely fees pay to solicitors, all professional fees paid to estate agents, Stamp Duty Land Tax (SDLT) and expenses incurred for improving the property.Further, as David lived in the new property bought for few weeks, he can term it as principal private lobby to avail exemptions between properties he owned as he is planning to sell it subsequentlyward two years. However, David has to establish some corroborations that he lived there for some time albeit even it is for short-term. If David resided in that house even for some weeks in the new property which should be his second or one of the many properties owned by him, which facilitates him to write off the past three years of capital gains when David decides to sell it after two years. Thus, David should elect the new property as his residence and should inform the Income-Tax Authorities within two years of purchase of 12, Mudchute Court. It is to be noted that the pickaxe can be changed by the David if he wants to select some other property he owned. If he fails to inform about his principle private residence to tax authorities , then , he would be losing his chance to claim exemption from capital gain taxes under the above scheme4.It is to be noted that respectable living in the property for avoidance of capital gain taxes can prove to be costlier to David as held in Court of Appeal in HRMC5 drive where the defendant employed an intricate chain of derivative transactions to minimise capital gain tax on 10.7 m. The court opined that any