HMRC sets out new claim rules for landlord Incorporation Relief

Property118 HMRC sets out new claim rules for landlord Incorporation Relief HMRC has published detailed new guidance explaining exactly what taxpayers must provide when claiming Section 162 Incorporation Relief for business transfers taking place from 6 April 2026. The change is particularly important for landlords incorporating property businesses because, unlike transfers completed before 6 April 2026, Incorporation Relief is no longer automatic even where all of the underlying statutory conditions are satisfied. Finance Act 2026 amended Section 162 TCGA 1992 so that the transferor must now make a positive claim containing the information required by HMRC. HMRC has now followed that legislative change with detailed guidance at CG65735, setting out what the claim needs to contain and when it must be submitted. What landlords will now have to provide In most cases, HMRC expects the Section 162 claim to be made with the Self Assessment return for the tax year in which the business was transferred. The taxpayer must identify which disposals of chargeable assets are covered by the claim and the total amount of Incorporation Relief being claimed. Additional information must then be supplied explaining the transaction and supporting the calculation. HMRC says this should include a description of the activities of the business being transferred, whether the transferor is an individual, trustee, partnership or LLP, and details of the company receiving the business. The claim must also identify the number and type of shares issued in exchange for the business and the date those shares were issued. Perhaps most importantly, HMRC expects to see the calculation of the relief itself. That calculation should identify the chargeable business assets and their values at the date of transfer, the total value of non-chargeable assets, any consideration received other than shares and the amount of gain being deferred. The detailed requirements are set out in HMRC’s new CG65735 guidance. No valuation of the company shares required One useful clarification is that HMRC says a valuation of the shares issued by the company is not required or expected for the Section 162 calculation. That is because the base cost of the new shares is calculated through the Incorporation Relief machinery itself. This should not be confused with valuations of the properties and other chargeable business assets being transferred. Those values remain fundamental because they are required to establish the gains arising immediately before Incorporation Relief is applied. There is a new statutory deadline Finance Act 2026 also introduced a specific deadline for making the claim. A Section 162 claim must now be made by the first anniversary of the 31 January following the tax year in which the business transfer took place. HMRC gives the example of somebody transferring a business on 19 July 2026. The transfer falls within the 2026/27 tax year, meaning that the ultimate deadline for claiming Incorporation Relief is 31 January 2029. That may appear to provide plenty of time, but landlords should be wary of treating it as a reason to postpone the work. Property valuations, business records and transaction evidence are generally much easier to obtain and verify when the incorporation is taking place than several years afterwards. The 60-day property return can matter much sooner There is another particularly important point for landlords. HMRC confirms that a Section 162 claim does not change the rules requiring certain disposals of UK residential property to be reported through the CGT on UK Property Account within 60 days. Where a UK Property Account return is required, for example where Incorporation Relief is only partially available and some Capital Gains Tax remains payable, HMRC says the amount of relief claimed should be entered in the property return and the supporting Section 162 information should be supplied as an attachment. The claim must then also be included in the Self Assessment return for the tax year of disposal. That makes it particularly important for the landlord, accountant and incorporation advisers to understand from the outset who is responsible for each stage of the reporting process. The underlying Section 162 conditions have not changed The new claim procedure should not be confused with a relaxation of the conditions for Incorporation Relief. HMRC’s revised CG65700 guidance continues to state that Section 162 applies where a person transfers a business as a going concern, together with the whole of its assets other than cash, to a company wholly or partly in exchange for shares issued to that person. What has changed is that satisfying those conditions is no longer enough by itself for transfers from 6 April 2026 onwards. A satisfactory claim must also be made. This means that the supporting evidence behind an incorporation is likely to become even more important. If HMRC subsequently enquires into a claim, the taxpayer may need to demonstrate not only how the gain was calculated but also why the activities transferred constituted a business, what assets belonged to that business and how the legal transaction corresponds with the figures submitted to HMRC. Partnerships and LLPs are included The revised HMRC guidance also confirms that Incorporation Relief can apply where the whole business of a partnership or LLP is transferred to a company as a going concern. The relief is calculated separately for each individual partner or LLP member, which means ownership records, asset valuations, share allocations and individual Capital Gains Tax computations need to be coordinated carefully. HMRC’s position on partnerships and LLPs is explained in CG65700. Why the change matters Until 5 April 2026, taxpayers generally did not need to make a claim for Section 162 relief because it applied automatically where the statutory conditions were met. A taxpayer who did not want the relief could instead elect under Section 162A for it not to apply. For transfers from 6 April 2026, Section 162A has been repealed and the process has effectively been reversed. The taxpayer must now actively claim the relief. HMRC explained when the change was announced that one objective was to obtain better information about Incorporation Relief claims so that it could analyse use of the relief and target compliance activity more effectively. The original policy announcement can be read here. For landlords considering incorporation, the practical message is straightforward: Section 162 should no longer be regarded as something that simply happens automatically after the legal work has been completed. The business evidence, valuations, tax computations, share issue and legal documents should be assembled as part of one coordinated process so that the eventual claim can be supported if HMRC asks questions later. Property118 has prepared two detailed guides explaining the new Section 162 claim process and the information landlords and their professional advisers should retain. 1) Understanding Section 162Incorporation Relief Applications 2) Section 162 Incorporation Relief Claims Landlords considering incorporation can also book a Property118 consultation here to discuss their objectives and the professional workstreams that may need to be coordinated. BOOK YOUR CONSULTATION TODAY 1. Property business details Tax year — Select — 2026/27 2027/28 Gross annual rent * Annual mortgage interest and other finance costs Non-finance costs — Select — Use a percentage of gross rent Enter an annual amount Non-finance costs as a percentage of rent Annual non-finance costs Number of associated companies Company profit extraction — Select — Retain all post-tax profit in the company Extract all post-tax profit as dividends Extract a percentage as dividends Percentage of post-tax profit to extract as dividends 2. Owners and shareholders Name Ownership / shareholding % UK tax resident? — Select — Yes No Other UK taxable income (excluding dividends) Other UK dividend income Include in salary optimisation Yes Include in dividend allocation Yes Over State Pension age Yes Entitled to a UK Personal Allowance Yes Apply UK dividend tax in this illustration Yes Apply UK PAYE and National Insurance to salary Yes Remove Name Ownership / shareholding % UK tax resident? — Select — Yes No Other UK taxable income (excluding dividends) Other UK dividend income Include in salary optimisation Yes Include in dividend allocation Yes Over State Pension age Yes Entitled to a UK Personal Allowance Yes Apply UK dividend tax in this illustration Yes Apply UK PAYE and National Insurance to salary Yes Remove Add another shareholder Get your free PDF report Your name Your email Yes, email me this report as a PDF. I understand a Property118 consultant may follow up. Email me the report (function(){ var uid = "crm-form-263729fd"; var form = document.getElementById(uid + '-form'); var wrap = document.getElementById(uid); var msg = wrap.querySelector('.crm-message'); var totalPages = 1; var curPage = 0; // ── Conditional logic ──────────────────────────────────────────────── var condMap = {}; function getFieldValue(fieldId) { var els = form.querySelectorAll('[name="' + fieldId + '"], [name="' + fieldId + '[]"]'); if (!els.length) return ''; var first = els[0]; if (first.type === 'checkbox' || first.type === 'radio') { var checked = []; els.forEach(function(el){ if (el.checked) checked.push(el.value); }); return checked.join(','); } return first.value; } function evalRule(rule) { var val = getFieldValue(rule.fieldId); var cmp = rule.value; switch (rule.operator) { case 'is': return val === cmp; case 'isnot': return val !== cmp; case 'greaterthan': return parseFloat(val) > parseFloat(cmp); case 'lessthan': return parseFloat(val) [ ][ ]". // Group those flat keys into an array of row objects under the repeater // id. 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Captured PHP-side // at render time, then echoed to JS so the submit fetch can // forward to V2 as request headers. body.append('embed_url', ""); body.append('embed_post_id', "0"); body.append('embed_post_title', ""); return fetch("https:\/\/www.property118.com\/wp-admin\/admin-ajax.php", { method: 'POST', body: body, credentials: 'same-origin' }) .then(function(r){ return r.json(); }) .then(function(res){ var p = res.data || res; if (p && p.success) { if (p.confirmationType === 'form' && p.nextFormId) { return swapInNextForm(p.nextFormId, p.prefill || {}); } if (p.confirmationType === 'redirect' && p.confirmationRedirectUrl) { window.location.href = p.confirmationRedirectUrl; } else { form.style.display = 'none'; msg.className = 'crm-message success'; msg.innerHTML = p.confirmationMessage || 'Thank you for your submission.'; // Carry the calculator's own results across. 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Built through the DOM // rather than concatenated into innerHTML so the URL cannot // inject markup. if (p.reportDownloadUrl) { var dlWrap = document.createElement('p'); dlWrap.className = 'crm-report-download'; var dl = document.createElement('a'); dl.className = 'crm-report-button'; dl.href = p.reportDownloadUrl; dl.target = '_blank'; dl.rel = 'noopener noreferrer'; dl.textContent = 'Download your report (PDF)'; dlWrap.appendChild(dl); msg.appendChild(dlWrap); } msg.style.display = 'block'; if (msg.scrollIntoView) { msg.scrollIntoView({ behavior: 'smooth', block: 'start' }); } } } else { throw new Error((p && p.error) || 'Submission failed.'); } }); } // Replace this whole form widget with another form, rendered server-side // with the carried-over values seeded in. Inline injected via // innerHTML won't run, so we re-create each script node to execute it // (this is what wires up the new form's submit / conditional logic). function swapInNextForm(nextFormId, prefill) { var rbody = new FormData(); rbody.append('action', 'p118_crm_render_form'); rbody.append('form_id', nextFormId); rbody.append('prefill', JSON.stringify(prefill || {})); return fetch("https:\/\/www.property118.com\/wp-admin\/admin-ajax.php", { method: 'POST', body: rbody, credentials: 'same-origin' }) .then(function(r){ return r.json(); }) .then(function(res2){ var pd = res2.data || res2; if (!pd || !pd.html) { throw new Error((pd && pd.error) || 'Could not load the next form.'); } var frag = document.createElement('div'); frag.innerHTML = pd.html; var parent = wrap.parentNode; var nodes = []; while (frag.firstChild) { var node = frag.firstChild; parent.insertBefore(node, wrap); nodes.push(node); } parent.removeChild(wrap); function reexec(old) { var s = 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.p118-btl-figures p{margin:6px 0 0;line-height:1.5} .p118-btl-warning{background:#fff8e6;border:1px solid #e8cc80;border-radius:9px;padding:12px;margin-top:14px;font-size:14px;line-height:1.5} /* "Estimated result" heading (override the section-heading border-top) */ .p118-btl-out .p118-btl-resulttitle{border-top:0;padding-top:0;margin:0 0 10px;color:var(--navy);font-size:21px} /* static disclaimer notes, always visible below the form */ .p118-btl-notes{margin-top:18px} .p118-btl-note{font-size:12px;color:var(--muted);line-height:1.5;margin-top:14px} /* title + intro at the top (matches the standalone calculator) */ .p118-btl-header{margin-bottom:8px} .p118-btl-title{color:var(--navy);font-size:28px;line-height:1.2;margin:0 0 10px} .p118-btl-intro{line-height:1.55;margin:0 0 6px;color:#1f2937} (function(){ 'use strict'; // ── Field ids (must match the seeded BTL Calculator form) ────────────────── var F = { year:'8ca5faab-7fd0-4263-ab16-c28cac2a33dd', rent:'29a6d2dd-1824-4d07-ae3f-5e14607d1599', interest:'a4cb8069-1050-4ccd-951f-d5aa4dea1cee', costMode:'3decd8c1-e458-4085-bb5c-fab26e71432b', costPct:'b6bf5767-e12f-4c46-aec2-06a7eba263f3', costAmt:'e9cb6264-8168-4b6d-81ff-c4ed51212e4f', associated:'aaa3b1a0-7c1d-4e01-aa7b-069a6335ff7d', extraction:'fdce52bf-c76f-449c-a63b-bce9e7906c6b', extractionPct:'8bd621d8-8eef-4114-9db9-d0f5f7c17963', shareholders:'c441faed-5bf9-4290-9335-37c9aba50a40', shName:'fe7f6621-acd1-42b9-b4fc-37ca29cbaf1a', shShare:'9df50ba8-ff5a-454a-9748-4bb9cb45f5c8', shResident:'e5601232-087b-4db0-8d4a-4b4a91cbbeb3', shOtherIncome:'3843a208-bb92-4b89-be11-9bd3088b57e9', shOtherDiv:'5609d332-3866-48ea-9ca1-4eb519005d46', shOptimise:'bce9079f-806e-4f61-b9ec-ea9591cd448f', shDividends:'b2b09c3b-0ef8-4ec5-8c29-686d2db85d8a', shPension:'5e6320c4-fd4b-4a97-93a0-f9048581c39a', // non-UK-resident only (shown when "UK tax resident?" = No) shEntitledPa:'7c1de2f0-11aa-4b22-9c33-a1b2c3d40001', shApplyDivTax:'7c1de2f0-11aa-4b22-9c33-a1b2c3d40002', shApplySalaryTax:'7c1de2f0-11aa-4b22-9c33-a1b2c3d40003', name:'df54eedb-ec85-410c-b865-c14e5d5983c6', reportData:'c8e98065-9275-4fd9-9bbe-607e5eb8e588' }; var repeater = document.querySelector('.crm-repeater[data-repeater-id="' + F.shareholders + '"]'); var mount = document.querySelector('.p118-btl-results'); var reportField = document.querySelector('[name="' + F.reportData + '"]'); if (!repeater || !mount) { return; } var form = repeater.closest('form') || document; // ── helpers to read the native fields ────────────────────────────────────── function el(id){ return form.querySelector('[name="' + id + '"]'); } function val(id){ var e = el(id); return e ? e.value : ''; } function num(id){ var v = parseFloat(val(id)); return isFinite(v) ? v : 0; } function entered(id){ var e = el(id); return !!e && String(e.value).trim() !== ''; } // read a sub-field inside a given repeater row by its child field id function rowEl(row, childId){ var w = row.querySelector('[data-field-id="' + childId + '"]'); return w ? w.querySelector('input,select,textarea') : null; } function rowVal(row, childId){ var e = rowEl(row, childId); return e ? e.value : ''; } function rowNum(row, childId){ var v = parseFloat(rowVal(row, childId)); return isFinite(v) ? v : 0; } function rowYes(row, childId, dflt){ var e = rowEl(row, childId); if (!e) return dflt; if (e.type === 'checkbox') return !!e.checked; return e.value === 'yes'; } function money(v){ return new Intl.NumberFormat('en-GB',{style:'currency',currency:'GBP',maximumFractionDigits:0}).format(isFinite(v)?v:0); } function percent(v){ return (isFinite(v)?v:0).toFixed(1).replace('.0','') + '%'; } function escapeHtml(v){ return String(v||'').replace(/[&<>'"]/g,function(ch){return {'&':'&',' ':'>',"'":''','"':'"'}[ch];}); } // ── TAX ENGINE (unchanged — same maths as the standalone calculator) ─────── var TAX = { '2026':{pa:12570,basicBand:37700,additionalThreshold:125140,generalRates:[0.20,0.40,0.45],propertyRates:[0.20,0.40,0.45],dividendRates:[0.1075,0.3575,0.3935],dividendAllowance:500,section24Rate:0.20,employeePT:12570,employeeUEL:50270,employeeMain:0.08,employeeUpper:0.02,employerST:5000,employerRate:0.15,ctLowerLimit:50000,ctUpperLimit:250000,ctSmallRate:0.19,ctMainRate:0.25,ctMarginalFraction:0.015}, '2027':{pa:12570,basicBand:37700,additionalThreshold:125140,generalRates:[0.20,0.40,0.45],propertyRates:[0.22,0.42,0.47],dividendRates:[0.1075,0.3575,0.3935],dividendAllowance:500,section24Rate:0.22,employeePT:12570,employeeUEL:50270,employeeMain:0.08,employeeUpper:0.02,employerST:5000,employerRate:0.15,ctLowerLimit:50000,ctUpperLimit:250000,ctSmallRate:0.19,ctMainRate:0.25,ctMarginalFraction:0.015} }; function personalAllowance(ani,eligible,tax){ if(!eligible){return 0;} return Math.max(0,tax.pa-Math.max(0,ani-100000)/2); } function allocateTax(amount,occupied,rates,zeroRateAllowance,tax){ amount=Math.max(0,amount);occupied=Math.max(0,occupied);zeroRateAllowance=Math.max(0,zeroRateAllowance||0); var basicAvailable=Math.max(0,tax.basicBand-Math.min(occupied,tax.basicBand)); var basic=Math.min(amount,basicAvailable);var remaining=amount-basic;occupied+=basic; var higherAvailable=Math.max(0,tax.additionalThreshold-Math.max(occupied,tax.basicBand)); var higher=Math.min(remaining,higherAvailable);remaining-=higher;var additional=Math.max(0,remaining); var slices=[basic,higher,additional];var totalTax=0; for(var i=0;i =upper){return profit*tax.ctMainRate;} return profit*tax.ctMainRate-(upper-profit)*tax.ctMarginalFraction; } function personalScenario(state,shareholders){ var tax=TAX[state.year];var propertyProfitBeforeInterest=state.rent-state.costs;var totalTax=0,totalCredit=0,totalCash=state.rent-state.costs-state.interest;var rows=[]; shareholders.forEach(function(s){ var propertyProfit=Math.max(0,propertyProfitBeforeInterest*s.share);var interest=state.interest*s.share; var base=computeIncomeTax({other:s.otherIncome,property:0,dividends:s.otherDividends,personalAllowance:s.personalAllowance,applyDividendTax:s.applyDividendTax},tax); var full=computeIncomeTax({other:s.otherIncome,property:propertyProfit,dividends:s.otherDividends,personalAllowance:s.personalAllowance,applyDividendTax:s.applyDividendTax},tax); var adjustedAboveAllowance=Math.max(0,full.ani-full.allowance);var creditBase=Math.min(interest,propertyProfit,adjustedAboveAllowance); var credit=Math.max(0,creditBase*tax.section24Rate);var incremental=Math.max(0,full.tax-credit-base.tax); totalTax+=incremental;totalCredit+=credit; }); return {tax:totalTax,credit:totalCredit,cashAfterTax:totalCash-totalTax,combinedWealth:totalCash-totalTax}; } function dividendAllocations(dividendPool,shareholders){ var participants=shareholders.filter(function(s){return s.receivesDividends;});var participatingShares=participants.reduce(function(sum,s){return sum+s.share;},0);var result={}; shareholders.forEach(function(s){result[s.index]=0;});if(dividendPool 0){return null;} var ct=corporationTax(preCT,state.associated,tax);var postCT=preCT-ct;var dividendPool=Math.max(0,postCT)*state.extractionPct; var dividendByShareholder=dividendAllocations(dividendPool,shareholders);var personalTax=0,employeeNi=0,netCash=0,rows=[]; shareholders.forEach(function(s,i){ var salary=Math.max(0,salaries[i]||0);var dividend=dividendByShareholder[s.index]||0; var base=computeIncomeTax({other:s.otherIncome,property:0,dividends:s.otherDividends,personalAllowance:s.personalAllowance,applyDividendTax:s.applyDividendTax},tax); var taxableSalary=s.applySalaryTax?salary:0; var full=computeIncomeTax({other:s.otherIncome+taxableSalary,property:0,dividends:s.otherDividends+dividend,personalAllowance:s.personalAllowance,applyDividendTax:s.applyDividendTax},tax); var incomeTax=Math.max(0,full.tax-base.tax);var eni=employeeNIC(salary,tax,s.statePensionAge,s.applySalaryTax); personalTax+=incomeTax;employeeNi+=eni;netCash+=salary+dividend-incomeTax-eni; rows.push({name:s.name,resident:s.resident,salary:salary,dividend:dividend,incomeTax:incomeTax,employeeNi:eni,net:salary+dividend-incomeTax-eni}); }); var retained=postCT-dividendPool;var combinedWealth=retained+netCash; return {operatingProfit:operatingProfit,employerNi:employerNi,employeeNi:employeeNi,ct:ct,dividendPool:dividendPool,personalTax:personalTax,retained:retained,combinedWealth:combinedWealth,rows:rows}; } function salaryOptimisationLimit(s,state,tax){ if(!s.optimiseSalary||!s.personalAllowance){return 0;} var dividendsForAllowance=s.applyDividendTax?s.otherDividends:0;var allowance=personalAllowance(s.otherIncome+dividendsForAllowance,true,tax);var unusedAllowance=Math.max(0,allowance-s.otherIncome);var companyCashProfit=Math.max(0,state.rent-state.costs-state.interest);return Math.min(unusedAllowance,companyCashProfit); } function candidateSalaries(s,state,tax){ var limit=salaryOptimisationLimit(s,state,tax);if(limit localBest.combinedWealth+0.01){localBest=result;localSalary=candidate;}}); if(localSalary!==salaries[i]){salaries[i]=localSalary;best=localBest;changed=true;}} if(!changed){break;}} for(var j=0;j best.combinedWealth+0.01){best=result;salaries=trial;}}} return best; } // ── read the form ────────────────────────────────────────────────────────── function getState(){ var costMode=val(F.costMode)||'percent';var rent=num(F.rent); var costs=costMode==='amount'?num(F.costAmt):rent*(num(F.costPct)/100); var extractionMode=val(F.extraction)||'retain'; var extractionPct=extractionMode==='retain'?0:(extractionMode==='all'?1:num(F.extractionPct)/100); return {year:val(F.year)||'2026',rent:rent,interest:num(F.interest),costs:costs,associated:Math.max(0,Math.floor(num(F.associated))),extractionMode:extractionMode,extractionPct:Math.max(0,Math.min(1,extractionPct))}; } function getShareholders(){ var rows=repeater.querySelectorAll('.crm-repeater-row'); return Array.prototype.map.call(rows,function(row,index){ var resident=rowVal(row,F.shResident)!=='no'; return {index:index,name:(rowVal(row,F.shName)||'').trim()||('Shareholder '+(index+1)),share:Math.max(0,rowNum(row,F.shShare))/100,resident:resident, otherIncome:Math.max(0,rowNum(row,F.shOtherIncome)),otherDividends:Math.max(0,rowNum(row,F.shOtherDiv)), optimiseSalary:rowYes(row,F.shOptimise,true),receivesDividends:rowYes(row,F.shDividends,true),statePensionAge:rowYes(row,F.shPension,false), // UK residents get full PA + UK dividend/PAYE treatment; for a non-resident // read the three conditional fields (defaults match the original: PA off, // dividend tax off, salary PAYE/NI on). personalAllowance:resident?true:rowYes(row,F.shEntitledPa,false), applyDividendTax:resident?true:rowYes(row,F.shApplyDivTax,false), applySalaryTax:resident?true:rowYes(row,F.shApplySalaryTax,true), entered:{share:String(rowVal(row,F.shShare)).trim()!==''}}; }); } function personName(){ var f=form.querySelector('[name="'+F.name+'[first]"]'),l=form.querySelector('[name="'+F.name+'[last]"]'); return ((f?f.value:'')+' '+(l?l.value:'')).trim(); } // ── render + report_data ──────────────────────────────────────────────────── function showMessage(msg){ mount.innerHTML=' '+escapeHtml(msg)+' '; if(reportField){reportField.value='';} } function recompute(){ var state=getState();var shareholders=getShareholders(); if(!entered(F.rent)||state.rent 0.0001){ return showMessage('Ownership percentages must total 100% (currently '+percent(shareTotal*100)+').'); } var personal=personalScenario(state,shareholders); var optimised=optimiseSalaries(state,shareholders); if(!optimised){ return showMessage('No feasible salary combination for these figures.'); } var diff=optimised.combinedWealth-personal.combinedWealth;var cls=diff>=0?'p118-pos':'p118-neg'; var headline=diff>=0?'The optimised company structure leaves an estimated '+money(diff)+' more in combined cash and retained profit each year.':'Personal ownership leaves an estimated '+money(Math.abs(diff))+' more cash each year.'; var nonResident=shareholders.some(function(s){return !s.resident;}); var html=' Estimated result '+headline+' '+ ' '+ ' Personal ownership: annual cash after tax '+money(personal.cashAfterTax)+' '+ ' Optimised company: combined cash and retained profit '+money(optimised.combinedWealth)+' '+ ' Ten-year straight-line difference '+money(diff*10)+' '+ ' '+ ' Metric Personal ownership Company (optimised) '+ row2('Annual property cash before tax',money(state.rent-state.costs-state.interest),money(optimised.operatingProfit))+ row2('Income Tax on property / remuneration (before Section 24 credit)',money(personal.tax+personal.credit),money(optimised.personalTax))+ row2('less: Section 24 finance-cost tax credit',money(personal.credit),'Not applicable')+ row2('Corporation Tax','Not applicable',money(optimised.ct))+ row2('Employer and employee National Insurance','Not applicable',money(optimised.employerNi+optimised.employeeNi))+ row2('Dividends extracted','Not applicable',money(optimised.dividendPool))+ row2('Profit retained in company','Not applicable',money(optimised.retained))+ ' '+cell('Combined wealth after tax')+cell(money(personal.combinedWealth))+cell(money(optimised.combinedWealth))+' '+ row2('Five-year straight-line total',money(personal.combinedWealth*5),money(optimised.combinedWealth*5))+ row2('Ten-year straight-line total',money(personal.combinedWealth*10),money(optimised.combinedWealth*10))+ ' '+ ' Shareholder UK tax status Salary Dividend Income Tax Employee NI Net received '+ optimised.rows.map(function(r){return ' '+cell(escapeHtml(r.name))+cell(r.resident?'UK resident':'Non-UK resident')+cell(money(r.salary))+cell(money(r.dividend))+cell(money(r.incomeTax))+cell(money(r.employeeNi))+' '+money(r.net)+' ';}).join('')+ ' '+ ' Figures used Gross annual rent: '+money(state.rent)+'. Non-finance costs: '+money(state.costs)+'. Annual mortgage interest and other finance costs: '+money(state.interest)+'. '+ (nonResident?' Non-UK resident shareholder warning: the calculator shows a simplified UK-only position. It does not calculate overseas tax, foreign tax credits, temporary non-residence rules or treaty outcomes. ':'')+ ' Salary optimisation: the calculator considered salaries only where a person had unused Personal Allowance, tested the relevant Income Tax and National Insurance outcomes, and restricted total salaries to the company’s available annual profit. Any salary must relate to genuine work performed for the company. '+ ' Projection warning: five- and ten-year figures are simple multiples of the annual result. They do not assume rent growth, inflation, refinancing, investment returns or future changes in tax law. '+ ' '; mount.innerHTML=html; if(reportField){ reportField.value=JSON.stringify({ name:personName()||undefined,taxYear:state.year,rent:state.rent,costs:state.costs,interest:state.interest, personal:{tax:personal.tax,credit:personal.credit,combinedWealth:personal.combinedWealth}, company:{operatingProfit:optimised.operatingProfit,ct:optimised.ct,nationalInsurance:optimised.employerNi+optimised.employeeNi,personalTax:optimised.personalTax,dividendPool:optimised.dividendPool,retained:optimised.retained,combinedWealth:optimised.combinedWealth, shareholders:optimised.rows.map(function(r){return {name:r.name,resident:r.resident,salary:r.salary,dividend:r.dividend,incomeTax:r.incomeTax,employeeNi:r.employeeNi,net:r.net};})} }); } return true; } function cell(v){ return ' '+v+' '; } function row2(label,a,b){ return ' '+cell(escapeHtml(label))+cell(a)+cell(b)+' '; } // ── two-step flow: "Calculate comparison" computes + reveals the report step ─ var revealed=false; var resultsField=mount.closest('.crm-field')||mount; var submitWrap=form.querySelector('.crm-submit'); // Everything AFTER the results mount is the "Get your free PDF report" step — // hidden until the user calculates. (Submit lives outside the field flow on // the WP render, so handle it explicitly too.) var reportEls=[];var sib=resultsField.nextElementSibling; while(sib){reportEls.push(sib);sib=sib.nextElementSibling;} function setReportVisible(v){ reportEls.forEach(function(e){e.style.display=v?'':'none';}); if(submitWrap){submitWrap.style.display=v?'':'none';} } setReportVisible(false); // Conditional inputs — show cost %/amount + extraction % based on the selects, // like the original calculator. Runs on load + on every change. function showField(id,show){ var e=el(id); var w=e?e.closest('.crm-field'):null; if(w){ w.style.display=show?'':'none'; } } // Per shareholder row: the three UK-treatment fields are only relevant to a // non-UK-resident, so reveal them only when that row's "UK tax resident?" = No // (exactly like the standalone calculator). function toggleShareholderRow(row){ var nonRes = rowVal(row,F.shResident)==='no'; [F.shEntitledPa,F.shApplyDivTax,F.shApplySalaryTax].forEach(function(cid){ var w = row.querySelector('[data-field-id="'+cid+'"]'); if(w){ w.style.display = nonRes ? '' : 'none'; } }); } function toggleShareholderRows(){ Array.prototype.forEach.call(repeater.querySelectorAll('.crm-repeater-row'),toggleShareholderRow); } // Checkbox fields can't be default-checked via the field config, so seed each // row's defaults once (salary optimisation + dividend allocation + PAYE/NI on; // everything else off). Marked so a user un-tick is never re-applied. function initShareholderRow(row){ if(row.getAttribute('data-p118-init')==='1'){return;} row.setAttribute('data-p118-init','1'); [F.shOptimise,F.shDividends,F.shApplySalaryTax].forEach(function(cid){ var e=rowEl(row,cid); if(e&&e.type==='checkbox'){e.checked=true;} }); // "UK tax resident?" renders with a blank "— Select —"; default it to Yes. var res=rowEl(row,F.shResident); if(res&&res.tagName==='SELECT'&&!res.value){res.value='yes';} } function initShareholderRows(){ Array.prototype.forEach.call(repeater.querySelectorAll('.crm-repeater-row'),initShareholderRow); } function toggleConditional(){ var cm=val(F.costMode)||'percent', ex=val(F.extraction)||'retain'; showField(F.costPct, cm==='percent'); showField(F.costAmt, cm==='amount'); showField(F.extractionPct, ex==='partial'); toggleShareholderRows(); } initShareholderRows(); toggleConditional(); form.addEventListener('change', toggleConditional); var calcBtn=document.createElement('button'); calcBtn.type='button';calcBtn.className='p118-btl-calc-btn';calcBtn.textContent='Calculate comparison'; if(resultsField.parentNode){resultsField.parentNode.insertBefore(calcBtn,resultsField);} calcBtn.addEventListener('click',function(){ if(recompute()){ revealed=true; setReportVisible(true); } }); // Once the report step is showing, keep the figures live as they tweak inputs. var t; function schedule(){ if(!revealed){return;} clearTimeout(t); t=setTimeout(recompute,120); } form.addEventListener('input',schedule); form.addEventListener('change',schedule); document.addEventListener('crm-repeater-change',function(e){ if(repeater.contains(e.target)||e.target===repeater){ initShareholderRows(); toggleShareholderRows(); if(revealed){ schedule(); } } }); // Title + intro at the very top, matching the standalone calculator. if (form && form.tagName === 'FORM' && !form.querySelector('.p118-btl-header')) { var header=document.createElement('div'); header.className='p118-btl-header'; header.innerHTML=' Buy-to-let tax comparison calculator Compare the estimated annual position where a residential property business is owned personally or through a limited company. Property information is entered first, followed by each owner or shareholder. '; form.insertBefore(header, form.firstChild); } // Static disclaimers — always visible below the form (as in the standalone // calculator). Appended outside the so the two-step reveal never hides them. var notes=document.createElement('div'); notes.className='p118-btl-notes'; notes.innerHTML=' This calculator is an indicative comparison for England, Wales and Northern Ireland. It does not calculate SDLT, CGT, ATED, Employment Allowance, pension contributions, student loans, Gift Aid, Marriage Allowance, High Income Child Benefit Charge, brought-forward losses or brought-forward finance costs. It does not model overseas tax or individual double-taxation treaties. Any salary must relate to genuine work performed for the company. '+ ' If the company is structured with multiple classes of shares, it may be possible for the founders or directors to distribute profits in proportions that differ from the overall shareholdings. The structure may also allow the value of the founders’ shares to be frozen, with future growth allocated to other share classes to incentivise the next generation and support longer-term inheritance tax planning. '; (form.parentNode||form).appendChild(notes); showMessage('Enter your figures above, then press Calculate comparison.'); })(); BOOK YOUR CONSULTATION TODAY The post HMRC sets out new claim rules for landlord Incorporation Relief appeared first on Property118 .