As we enter April, several important updates could impact homeowners, landlords, business owners, and families. This month, we explore how renting out part of your home may affect your Capital Gains Tax liability and the reliefs available to minimize it. If you receive Child Benefit, don’t forget that payments increase this month, but you must update HMRC if your 16-year-old is continuing in education or training to avoid disruptions.
For business owners, we cover the tax implications of selling business assets, including potential adjustments to your taxable profits. If you own property jointly with your spouse or civil partner, you may be able to split rental income based on actual ownership rather than the default 50:50 split- provided you meet HMRC’s requirements.
With Making Tax Digital for Income Tax becoming mandatory in 2026, now is the time to start preparing for digital tax reporting. We also highlight key tax deadlines for April and May to help you stay on track and avoid penalties.
Renting out part of your home may affect Capital Gains Tax when you sell. While Private Residence Relief applies, Letting Relief can reduce taxable gains. Learn how PRR, Letting Relief, and exemptions impact your tax liability.
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From April 2025, Child Benefit increases to £26.05 for the eldest child and £17.25 for others. Payments stop after a child turns 16 unless they continue in approved education or training. Parents must update HMRC by 31 August to avoid disruptions.
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When selling assets on which capital allowances were claimed, you may need to adjust your taxable profits with a balancing charge or allowance. Understanding these rules ensures you don’t face unexpected tax liabilities. Learn how to handle asset disposals correctly.
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Couples who jointly own rental property are usually taxed 50:50, even if they own different shares. But if you’re married or in a civil partnership, Form 17 lets you split income based on actual ownership, provided you meet HMRC’s rules.
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Making Tax Digital for Income Tax (MTD for IT) will become mandatory in phases from April 2026. If you’re self-employed or a landlord earning over £50,000, get ready for quarterly updates, digital record keeping, and a new penalty system.
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Tax Diary April/May 2025
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Kind regards,
Elan & Co
