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j lewis

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  1. As you have sold your main home and have moved into the rental, I assume you paid the lower rate of SDLT at the time as you did not have any other property? . As you have also been living in this property, you will not be able to claim the lower rate of SDLT, if you are now purchasing another main residence to live in and renting out the current property you reside in.
  2. If you and your partner retain your current properties, you will have to pay the additional 3% surcharge stamp duty on any future purchase, even if it will be your only residence. You will still receive principal private residence relief for the period you occupied the flat, on any future sale.
  3. is the purchase cost £84001.50 75% of the purchase price or all of the purchase price?
  4. It is important to purchase the properties in the correct entity as SDLT will be payable on each transfer. Whether it is better to purchase through a Limited company or in personal names, is dependant on a number of factors, and professional advice should be sought.
  5. If you are UK resident and domiciled in the UK, you will be liable for tax in the UK on your worldwide income. If you purchase the property personally, this will mean any rental income arising, and if you purchase through a Ltd company, you will be liable for any income to take from the company. There may be further tax in the country that you purchase, which is dependant upon the jurisdiction. You may get tax credit in the UK for any foreign taxes paid if there is a double tax treaty in place.
  6. Good Afternoon You are able to purchase the property in joint names, you can then transfer 99% of the beneficial ownership to yourself via a declaration of trust and a form 17 election with HMRC. This will mean that you are taxed on 99% of the income and expenses and your husband will declare 1%. On any subsequent sale of the property, any capital gains tax will be split in the same proportions. You can however, revoke the declaration of trust whenever you want.
  7. This is dependent on many factors such as, the jurisdiction of where you are purchasing, the impact on your UK tax position (if you are UK resident), your earnings and also where you are domiciled.
  8. Companies that own buy to let properties, under the SIC code activity 68209, are investment companies and will never be regarded as trading for tax purposes, that being said, investment companies that hold buy to let properties (whether managed externally or by the directors), are allowed to claim full relief for mortgage interest payments. The s24 restriction to tax relief for mortgage payments for landlords, only applies to personally held property.
  9. If you transfer half share of the property into joint names, as you are a married couple, there is no gain no loss for capital gains tax. With respect to SDLT, if you transfer 50% legal ownership to your wife, SDLT will be payable on the share of the mortgage she is taking on, as this is deemed consideration for SDLT purposes. Therefore, SDLT is due on £150K (50% of outstanding mortgage). After the £125K SDLT threshold for married couples, the SDLT liability will be £500. Once the property is in joint names, you can then enter into a Declaration of Trust, whereby, 99% of the beneficial ownership can be transferred to your wife, which means that your wife will be taxed on 99% of the income and you will be taxed on 1%. You will need to complete a Form 17 election and submit to HMRC with a copy of the declaration of trust to elect for the different income split.With regards to the income tax on the rental income, your wife is able to use her personal allowance and lower rate tax band against the 99% of the rental income.When you come to selling the property, the capital gains tax will follow the beneficial ownership i.e. 99% to your wife and 1% to yourself, you can however change the percentage of the beneficial ownership by entering into a new declaration of trust, or alternatively, the declaration can simply be revoked and the split will go back to the legal ownership i.e 50:50.
  10. Property Hub Tax are able to do this for you. We are part of the Property Hub group. Please get in touch at tax@propertyhub.net for a quotation.
  11. Hi Hayley and Steve The best way to get answers to all your questions would be to book a consultation with our specialist property tax advisers at Property Hub. You book a 45-minute consultation with the tax adviser. You'll have a chance to get all your questions answered and go feeling confident about the next steps you should be taking. Before the call, you’ll fill in a questionnaire to help us prepare – including telling us your goals, your personal circumstances, and about your current portfolio (if you have one).On the call, your adviser shares their screen while they walk you through your options – so you understand the exact pounds-and-pence impact different decisions will make to your tax bill or decision making with regards to Limited Company incorporation. You’ll receive a custom report summarising everything you talked about, backed up by detailed numbers for each different scenario.You become a Property Hub Tax client, and we implement our recommendation. We also provide advice whenever you need it, and take care of the nuts-and-bolts of your tax filings. But there’s no commitment! Although most people choose to work with us, you can take your report and get it implemented by another accountant if you want to.The consultation and report costs just £300 + VATExceptional value for finally getting clarity on how you should structure your business - by someone who completely understands what property investors are all about. You can book the consultation by going to the link below:https://thepropertyhubtax.as.me/schedule.php
  12. When doing your calculation, just be aware that your income from property that is taxable is rental income less expenses BUT BEFORE mortgage interest payments. This may well push you into the higher rate tax bracket earlier.
  13. If you wish to claim the First time buyers relief, then you mustn't have owned a property previously and you must purchase it with the intention of it being your main residence. If you do not qualify for the FTB relief, then as you own no other property, you will not be subject to the additional 3% surcharge as it is your only property.
  14. As long as the property is in joint names, then you will own the property jointly and enter into a Declaration of Trust to give your wife the majority of the beneficial ownership and income. A copy of the DOT needs to be submitted to HMRC with a Form 17 election for the income split to take effect.