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taxantics

Established Member
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About taxantics

  • Rank
    Established member

Contact Methods

  • Website URL
    www.taxantics.co.uk
  • Skype
    jeromelane_1

Profile Information

  • Location
    Berkshire
  • Areas I invest in
    Bristol
  • About me
    I provide advice and compliance support in all aspects of business and personal tax to individuals and their families, entrepreneurs, sole traders, partnerships, limited companies and trusts.

    I have helped many landlords navigate the tax changes brought in by the government over the last few years. From the removal of wear and tear allowance, the introduction of replacement of domestic items relief, cash accounting and the ever controversial mortgage interest relief restriction, I have helped property businesses align their business plans with their long term goals and in many cases, realise a new lease of life for taking the business forward.
  • Property investment interests
    BTL
  • My skills
    Tax, accounts, structuring and estate planning advice.
  • My goals
    To rebuild a BTL portfolio
  • Interests outside property
    Tax, keep fit, running, climbing, festivals and camping.

Recent Profile Visitors

941 profile views
  1. You’ll probably be better off hiring kit you need (allowable expense) than buying something you don’t really need long term and selling at a loss. If you make a capital allowances claim and then sell the asset, there’ll be a balancing charge. As EvolutionBlogger suggests, don’t let the tax tail wag the dog!
  2. Spaceships are great investments for tax purposes though 🤪🤪🤪 ...there’s time to purchase any new kit needed in the business and claim capital allowances...
  3. The 31 January 2022 is the last day you can amend your 19/20 tax return. You’ll only pay interest at 2.6% from 31 January 2021 to payment date on any late paid tax (provided paid by 1 April 2021). Income earned in 19/20 but paid in 20/21 should be in previous years accounts unless you use the cash accounting (income and expenses only recognised when received or paid) basis. If you use cash accounting, then if you haven’t physically received payment in 20/21, then income can be taxed in the next tax year. Some trades can make averaging elections but this is unlikely to include y
  4. Yes it is legal if the finance terms do not prevent it. However, you will personally have a benefit in kind tax charge and the company could be within the ATED (£3,700+ per annum) if value over £500k. You will also lose any principal private residence relief on future disposal. Occupying properties owned by a company you have an interest in is rarely the best option.
  5. It is possible to structure a varying income split while maintaining equal capital shares without a tax liability arising. It’s easier for unmarried couples. You should marry for love and not tax benefits! You can contact me to discuss if you wish.
  6. Hi Max, you should open a company bank account (Starling Bank is free of fees) and then you can lend the money into the company prior to putting the deposit down (recording as a directors loan). This is the route most trodden. Subscribing for more shares in an investment company is not very flexible and probably not worth even thinking about. I’d suggest getting the bank account open soon as it can take some time especially for a company with no track record. good luck!
  7. The fees aren't unreasonable although ever increasing fees per property is indicative of not having a scalable solution. Using software wisely can keep costs, both present and future, from escalating. Our landlords clients typically pay around £1,000 including VAT for 5-10 property portfolios and £1,200 for corporates. This includes cloud bookkeeping software and an annual tax review with recommendations to maintain efficiency. With the right systems in place, costs can be kept low. Fees should be comparative to the service you receive and not the profit you make!
  8. There's nothing to stop you releasing equity from your main home and lending it to a limited company for property purchases. The mortgage interest relief restrictions shouldn't apply although the maximum relief that can be claimed is capped at £50,000 or 25% of your total adjusted net income. You should check with brokers etcetera first in case the additional debt then hampers your or the companies ability to obtain finance. There are also risks should the property investment company fail or if HMRC were to challenge the deductibility of the finance (unlikely but possible if finance only tak
  9. Sure - you can email jerome@taxantics.co.uk
  10. Your solicitor is definitely making hard work of a simple thing. All you should need to do at most is show the solicitor a loan agreement from you to the company which is buying the property for 100% finance. I assume the other lenders are already happy. You can even tell the solicitor you’re gifting the 25% to your company as it’s not his concern what you report in accounts post transaction. If you want, you can drop an email to jerome@taxantics.co.uk stating your area and I’ll give you an alternative solicitors contact details but this will probably slow the transaction down. Good luck! I’ve
  11. There’s always risk to self administering without expertise although you can do this. Property transactions should be documented and witnessed and I’d always advocate using a solicitor or conveyancer. Where are you based in case I know someone who might be able to help? It doesn’t sound like a full sale and purchase.
  12. Hi Brad, I’m a tax advisor and know a lot of brokers! Adrian Knott’s team have helped a number of my clients with great results. https://www.akpartnership.co.uk I also have contacts at Trafalgar Square who are also consistently decent. Good luck! Jerome
  13. The simplest route is to have the loan relationship between you and the company. If you pay your parents interest and the company pays you interest, then your parents have taxable interest income and you have taxable interest income offset by an allowable interest expense so no tax cost for you. 8% on an unsecured loan seems commercial so HMRC are unlikely to challenge. If your parents become shareholders then it adds complexities and reduces your pool of lenders. Some lenders don’t like 3rd party loans or additional shareholders especially if they are ageing. Shares with specific ri
  14. Have they developed sites before though and how much are they actually doing? Can you get other reliable providers to manage the project? You might walk away with more but there’s risks. It’s hard to quantify without knowing potential issues, likely profit and timeframes. If they have the experience, you might learn a lot and then be able to tip the scale on future projects as you gain experience too. You could make the profit share performance related so the longer it takes the less they get. This enables you to get cash back out quicker too if they achieve targets.
  15. There appears to be confusion between the first time buyer definitions and additional rate provisions. I believe that although you won’t qualify as a first time buyer, you will be relieved from the additional rate of SDLT if you complete on a purchase before the 3rd anniversary of the inheritance under Para 16 Sch 4ZA FA2003 provided you own no other property. As it stands, if you manage to complete by 31 March 2021 and purchase a property for less than £500k, then you should pay no SDLT. Everyone awaits what happens 1 April and beyond with baited breath. Nothing will be surprising anymore! 🤪
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