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marc s

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  1. Fellow Hubbers, Does anyone have a template (in Word format that I can edit) that I can use to list the various documents I have handed over to my tenant at the start of the tenancy (EPC, Gas Safety Certificate, Prescribed Information, etc). The intention of course being to get them to sign this, acknowledging receipt in case I ever needed to prove this. I have found a template on the RLA website but it's in PDF form that I can't edit. Most grateful if anyone has one that they could share. Many thanks Marc
  2. That's incredibly helpful, many thanks Dave. I had not considered the implications of the business bank account that you raise but based on this it's clearly not worth the hassle to save probably around £7/month in banking costs (or £5 as I guess these costs would also be tax deductible)..
  3. Hi all, I am about to set up my Limited Company and had a number of specific questions that I was hoping folks could help me with as I know lots of you have already done this. Any advice would be extremely appreciated: Is there a difference between a Limited Company and an SPV? I am planning to create a company purely as a means of buying and holding rental properties, with no other business anticipated. However, I have heard reference to both Limited Company and SPV and just wanted to check if these are essentially the same thing for the purposes of setting up
  4. Just reviving this old post as I am now finalising my strategy for future purchases and inevitably this is likely to involve setting up an SVP. However, like original poster Jac, I have read that you can put in place a Deed of Trust from yourself as an individual to your Limited Company. You therefore buy the property in your own name, take out a BTL mortgage as an individual (likely at a better rate), but you then submit a Deed of Trust (I believe a Form 17 to HMRC) stating that the benefit and all associated costs go to the Limited Company. Therefore you get the best of both worlds - lowe
  5. The reference to a £40k threshold is interesting, but the wording is ambiguous. Do we interpret this as a £40k nil rate band, with the new 3% kicking in for the £40k-£125k portion only, or do we think that this only excludes purchases below £40k but once exceeded the full £125k gets caught by the 3% charge?
  6. The only saving grace is that this tax isn't retrospective on properties already owned unlike the reduction of mortgage interest relief in the Summer Budget. So at least we can weigh this up on any new purchases from April 2016 onwards. I'm still not entirely clear though whether the £0-125,000 band, currently 0%, will remain at 0% or will increase to 3% for BTL. When I first saw this I assumed it would only impact above the nil rate threshold (i.e. 2% becomes 5% over £125k). Would appreciate a definitive answer on that one.
  7. Yes, I'm sure you're right. In the full text, GO even references the tax hikes from the Summer budget and says that the new SDLT rule is intended to catch the cash buyers not previously affected: And the fifth part of our housing plan addresses the fact that more and more homes are being bought as buy-to-lets or second homes. Many of them are cash purchases that aren’t affected by the restrictions I introduced in the Budget on mortgage interest relief; and many of them are bought by those who aren’t resident in this country. Frankly, people buying a home to let should not be squeezin
  8. Yes, you beat me to it. From the official policy document: "Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties, such as buy to let properties and second homes, with effect from 1 April 2016. The higher rates will be 3 percentage points above the current SDLT rates." I assume this means 3% in the sense that, for example, 1% becomes 4% rather than a 3% increase in the amount paid (e.g. SDLT of £1,000 becomes £1,030 - wishful thinking I suspect!)
  9. Great podcast as ever. Quick question to the Hub: Rob D mentioned that if you manage your own properties you can effectively pay yourself a management fee and deduct this for tax purposes. Is this an automatic deduction that can be made with no formal management agreement or documentation in place? If challenged by HMRC what would you need to show them to prove this? And what sort of fee would be reasonable? If I use a lettings agency to find me tenants but then manage it myself once the tenancy starts I presume 10% of rent would be excessive. How about 5%? Would appreciate everyone's v
  10. Yes, I imagine it will affect HMOs and student houses the most. I guess this comes down to whether you have elected at the outset to choose the 10% wear and tear deduction or the 'renewals allowance' alternative. Whilst it's generally accepted that most landlords benefit more from the 10% wear and tear option, there will probably be a lot of HMO and student landlords who have to replace furniture so often that they chose the renewals option (and save money with this arrangement). Under the new rules, it sounds to me like we are all being moved to the 'renewals allowance' method where we can
  11. Thanks Rob - glad that I hadn't publicy made a fool of myself and got it all wrong. From reading into this further, the restriction to only the 20% basic rate relief relates to all finance costs, not just mortgage interest. This would therefore include mortgage arrangement fees and mortgage broker costs. It just keeps getting worse! The loss of the 10% wear and tear allowance will obviously affect all landlords of furnished properties, regardless of their marginal rate of tax. Ian Wallis's clever 'inflatable furniture trick' now goes out the window! Not sure there is any way around th
  12. Getting this back on topic, I think I can clarify the tax change for everyone. Firstly, it only affects you if you are a higher or top rate taxpayer (i.e. you pay 40% or 45% at your marginal rate). I imagine most of us do fall into that category. Previously, if you were a 40% taxpayer a very simple calculation might have been: Rent received £10,000 Mortgage interest £5,000 Tax liability £10,000 @ 40% = £4,000 Less Mortgage interest relief £5,000 @40% = £2,000 Tax bill = £4,000 - £2,000 = £2,000 Now, under the new rules, regardless of whether your marginal rate of tax is 20% (basi
  13. The loss of the 10% Wear and Tear allowance for furnished properties will also be a huge blow to many. That one will, I assume, affect deductions allowed for both individuals and Limited companies?
  14. Great news Rob, I'm already in! And don't forget of course that it's a tax-deductible expense so it's even better value!
  15. Dear Hub, Is anyone able to recommend a good managing agent who could manage a block of 10 flats in North London (Islington)? Our block (1 of 4) exercised its Right to Manage (RTM) a few years ago and needs a good, trustworthy managing agent to run a small number of services (cleaning, internal and external maintenance, statutory testing, arranging buildings insurance, etc). As our block still benefits from (and contributes towards) a few of the freeholder’s estate services, there will also be a requirement to vet invoices from the freeholder’s managing agent. This is a fairly light tou
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