News

Having been in the Edinburgh property market for nearly 30 years I have worked through many economic cycles but perhaps the last 18 months has shown just how resilient Edinburgh property can be.

The sales market has held up incredibly well over the entire 18 months with family homes seeing a surge in demand and increased prices. Initially this resulted in a largening gap between entry level properties and mid-priced properties but we are now seeing entry level properties obtaining multiple bids, at closing dates, well in excess of Home Report values.

The rental market has had a more turbulent 18 months but has returned very strongly over the last 2 months. Initially the market took a real dip as businesses closed and students returned home plus work insecurity and financial difficulties were very real for many. This was of course a time to ensure we worked under government guidelines and it was great to see our tenants, landlords and contractors work together for the safety of all.

As I mentioned the last 2 months has seen the rental market improve dramatically due to movement restrictions being lifted, students returning and work relocations. The rental market has a strong need for a transient population, and it is wonderful to see the city opening up once more

If you are looking to sell, buy or rent your property then do call 0131 473 1591 or use our online contact form.

A major change in the reporting and payment of Capital Gains Tax (CGT) on UK residential property disposals took place on the 6th April 2020.

It is now necessary within 30 days of completion of sale to submit a provisional calculation of any gain to HMRC and pay any tax that is due.  Ultimately the gain will still be recorded on the tax return and any over or under payment of tax dealt with in due course.  If tax is overpaid then this will not be repayable until the tax return is submitted. Prior to this date CGT was recorded on an individual’s personal tax return and tax payable on the 31^st January following the end of the tax year.

If a property, say a buy to let investment, is sold on the 31^st May 2020 any gain should be reported and CGT paid by 30^th June 2020.

Note that the new 30-day reporting and payment obligation will not apply where no tax is payable such as the disposal of your principal private residence or a sale at a loss.

The HMRC website provides further information.

If you are considering selling your property and wish to know how we can help, call 0131 473 1591, or use our online contact form.

From the 25th January 2019, the rate at which Additional Dwelling Supplement (ADS) is charged in Scotland will increase from 3% to 4% for those buying a second home, rental property, or residential property that is in addition to their primary residence.

Where the ADS applies, there is a further 4% charge on the full chargeable consideration added to the Land and Buildings Transaction Tax (LBTT) liability for certain transactions with a relevant consideration of £40,000 or more, where the subject-matter of that transaction consists of or includes the acquisition of ownership of a dwelling in Scotland.

The ADS payable for a residential property transaction within the scope of the additional amount of LBTT will therefore be charged on the whole relevant consideration for that transaction.

Our investor clients can calculate ADS along with LBTT using this Tax Calculator.

An example of how to present your rental investment and the asset management we have just carried out for a client is shown below.

• Purchased July 2018
• Purchase price of £130,000 with Home Report value £130,000.
• £5,000 spent on upgrade.
• Let within 24 hours of being advertised at £750 pcm.
• Gross yield 6.6%
• Current Market Valuation £150,000