Property Services and Accountancy Needs

Are you planning to sell the property that you purchased a couple of years ago? Do you know that you have to either pay capital gains tax on the income or invest the amount received to purchase another property within a certain period? Capital tax is deduced by taking into account the index value of a property on the year it was purchased and subtracting it from the index value of that property when you sell it. If the indexed selling value is more than indexed purchase value (the tax agencies determine the index value), you have to pay a tax on that excess amount. Alternatively, you can avoid paying taxes by investing the total sum received to purchase another property whose value matches or exceeds the amount you received from the sale. This is an extremely tough calculation and is possibly only if you are aware of the index value of the financial year of purchase as well as that of the financial year of sale. It is better to hire the services of companies that offer professional solicitors accounts and accountancy services.

Extra information about solicitors accounts

Always hire a professional 

It makes sense to hire an agency that are well aware of the solicitors rules as the same have changed considerably over the past few years. Even the slightest of mistake can lead to huge penalties charged from you by the income tax authorities. It is a different scenario while purchasing property. You need to be sure that the property is free of all encumbrances. This means that you should confirm whether the owner of the property you wish to purchase has cleared all the dues of the municipal corporation. You also need to find out whether he has completed the mutation process and the property is in his name. There are occasions in which individuals take loan against property. In such a scenario, you will fall into a trap, if you purchase that property, as the existing owner will not have the title deeds of the property with him.

Searching process

Professional solicitors conduct a "searching" procedure through which they find out whether the property belongs to the person who is selling it, and whether it is mutated in his name. Companies that are conversant with the solicitors rules, and offer accountancy services will ensure that you face no problems when purchasing a property. In fact, they will deduct the amount used to purchase the property from your profits, helping you to save on income tax payable.