insideKENT Magazine insideKENT October 2018 Issue 79 - Page 173

FINANCE LIFE IS LIKE AN ACCOUNTANCY CYCLE BY KEVIN THORNBY, TAX MANAGER AT WILKINS KENNEDY IT IS EITHER LIKE A BOX OF CHOCOLATES, OR A BED OF ROSES, BUT HOWEVER YOU PREFER TO DESCRIBE LIFE, ONE THING’S FOR CERTAIN – WE SHOULD EXPECT THE UNEXPECTED. NO MATTER WHAT STAGE OF LIFE YOU’RE AT, THERE IS ALWAYS SOME PLANNING YOU CAN DO. WE’VE STARTED AT STAGE ONE – MARRIAGE. HERE’S A FEW THINGS TO HELP YOU ON THE WAY. GETTING MARRIED When the time is right to tie the knot, you might just find the taxman has left a gift of his own in the pile of wedding presents. If you are married or in a civil partnership and if one of you earns less than the £11,850 earnings threshold, you are able to transfer a proportion of your personal allowance between you. The caveat is that the other who is transferring the allowance must be a 20 per cent taxpayer – higher rate earners are exempt. If you were born before 6th April 1935, you cannot claim marriage allowance – but you will be entitled to married couple’s allowance, which could give you a reduction on your tax bill of up to £869. BUYING A HOUSE OR PURCHASING A SECOND HOME If you decide to purchase a property together, you might come across a few scenarios. If you purchase your first property together, and neither of you have purchased property before, you will be eligible for SDLT relief. The government introduced legislation during the last autumn budget that excluded all first time buyers from paying SDLT on properties up to £300,000 and then just five per cent up to the value of £500,000. What if one of you already owns a property and you want to keep it, but you also want to purchase a joint property together? In that instance, you would pay the higher rate of SDLT on the new property purchase. This will be made up of the standard SDLT payment, plus a three per cent surcharge, which applies to all second homes. This includes any property purchased abroad, or where there is a shared interest in property, for example if it is held in trust. If you sell the property and purchase another, as long as it is replacing your main residence, you would just pay the standard rate of SDLT. property relief or En ɕɕϊdIٕ)ͥՅѥ́ɕЁݗeɕ)͕٥ɽѡ͔ѡܸ) хЁ]́-é́͡ɐ) ѕɉ䰁5ѽ=ѽ)Mݥȁɔɵѥ)1)͡ɐ̀Ԁ ѕɉ܀Ѐ)5ѽȀ؀=ѽ܀)MݥЀ)QI9MII%9MMQL)%ԁ͔Ѽ͔͕́ԁٔ)ݥѠȁ͔ȁ٥ѹȰԁ)Ʌ͙ȁ͕́ݕԁɕɽ х)́Q P%ԁɔ͕Ʌѕȁ)ЁٔݥѠȁ٥ѹȁȁ͔)Ёѡх啅Ȱѡԁɔ፱Ց)ɽ Pɕ%ѡ͔ȁ٥ѹ)ѡ͔Ѽ͕ѡ͕аѡݥٔѼ)х䁝ЁѡЁͅ)Qɕ٥ѹȁݥЁٔѼ)եͥѥ́хѡȰ́ѡɅ͙ȁݥ)ɕѕ́и%ЁЁͼݽѠ)ͥɥѡȁɕ́Ս́ͥ)եɥݥͭ乍)ܹݥͭ乍)ݥͭ)ݥͭ(