Alice Pearson ACA CTA, senior tax manager at Mercer & Hole, considers the key tax changes affecting corporate and individual landlords in Budget 2017 including the CGT indexation allowance impact on asset sales to rent a room review and mileage allowances
Changes for corporate landlords
Indexation allowance
Companies subject to corporation tax are currently entitled to indexation allowance to account for inflation and reduce the capital gain arising when disposing of a capital asset (other than property held as trading stock). Indexation allowance is to be withdrawn and will be frozen at 31 December 2017. These measures appear to be a further attempt to align corporate ownership with the position for an individual owner.
Non-UK resident companies
Non-UK resident companies currently pay income tax on UK property income.
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