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About taxantics

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  • 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
  • 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.

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  1. You’re treading a dangerous line if you try and act as both an employee and self employed subcontractor to the same company. However, if a company you are connected with is charging property management fees on a commercial basis to a company you happen to also be employed by, then there should be no issues. There may be required disclosures in the accounts of both companies which your accountants can advise on.
  2. Going cloud is best to future proof ready for making tax digital (IMO). Starling are a good bank with no fees and we partner with a bank that gives 6 months free banking and built in bookkeeping software to track loan accounts etc. You could use one of these accounts just to put directors expenses through which might suit you. You can also use any number of property platforms or Xero/QuickBooks so it really depends on what you need and want to spend. Keeping it simple often works best. Ask your accountant too. Good luck!
  3. Even if your friend is gifting you any gain, they are making a chargeable transfer for CGT purposes and should pay tax on any gain. Let’s say you bought the property for £200k in 50/50 ownership and it’s now worth £300k. Your friends gain is broadly half the increase In value less say 10% for it being a half interest so £45k gain less any available CGT annual exemption taxable at 18% or 28% depending on other income. For SDLT purposes if it’s a genuine gift and no money changes hands it’s only the assumption of debt that’s chargeable; so 3% on £73k. The extra finance should not be subject
  4. I actually advised on a similar situation not long ago for an Australian client of mine. Partnerships don't work for tax planning in Australia where property is co owned. https://www.ato.gov.au/law/view/pdf/pbr/tr1993-032.pdf The age old form 17 and transfer of beneficial interest option is also available but can have SDLT issues. If the property is not co owned, then transfer of income streams anti avoidance could apply. You could look at incorporation which would incur CGT (with main home relief applying) and SDLT but would create a healthy directors loan account in you
  5. Hi Charleigh Provided full market value is used, a disposal from one to another company you control would be broadly treated the same as a disposal to an unconnected company, with corporation tax due on any gain and SDLT due on purchase. However, creating a group structure, i.e. inserting a holding company above company 2, should avoid the corporation tax on the gain and SDLT group relief should also apply. Using a holding company can also lend to other tax advantages (SDLT and VAT). It's likely that you could end up with multiple companies as projects develop; the tax savings
  6. You shouldn't have any SDLT to pay on a refinance. You may be liable to SDLT if you're buying your friend out at the same time. The chargeable consideration for SDLT purposes will be what you pay your friend. It's not clear if you're just taking money out against the property or changing ownership as well. If the property is still your only property, you won't need to worry about the additional 3%.
  7. RSM or Azets are both good and qualified tax advisors and surveyors. They will be costly compared to less national firms and there might be a decent local provider you could be. There are a lot of unqualified providers out there so take care who you pick. If it's not a complicated claim, your accountant might be more than capable of doing it. We make claims for our clients and we're qualified in tax. Good luck!
  8. You're welcome Shaun and yes you can meet business costs from a personal account and record in the directors loan account - as David points out, care is needed to avoid mixing personal and business expenditure but for larger items like transferring deposits and fees to solicitors, it shouldn't present a problem as long as you properly record transactions in the company bookkeeping system. Good luck with your first B2L and I hope it is the first of many 😇
  9. You are correct; it’s a market value transfer subject to CGT (with main home relief applying?) and SDLT (£7,500 for corporates on £200k residential purchase from 1 October 2021)
  10. You don’t need to get into form 17 hell or even need a deed of Trust if the property isn’t owned jointly. Your wife could just receive the income. To avoid settlements anti avoidance legislation and be more commercial as well as facilitate potential future tax planning advantages, a partnership could help. Good luck!
  11. Hi, TaxAntics support new and established landlords. We’re also happy to have an initial no obligation chat with you. You’ll be speaking to a tax advisor and not a salesman 😇 Call 01276600990 or email jerome@taxantics.co.uk
  12. Yes it really is as simple as that and recording it in the accounts as a directors loan account. Some like formal documentation and prepare company minutes recording the loan to belt and brace it although this isn’t really necessary for owner managed companies. If you charge your company interest, then a simple loan agreement is recommended and the company will need to deduct income tax at 20% and report/pay this to HMRC. The interest piece is a bit of a faff but if you have personal savings allowance (up to £1k) and starting rate (£5k if earn less than £17.5k), then it’s a good chunk of corpo
  13. If your parents weren't legally married, then the entire estate should have been divided equally between the children upon each partners death. If the property was legally your fathers, it would appear that you and your brothers/sisters inherited the property in 2006 when the IHT nil rate band would have been £275k or £285k depending on the date of his death. The IHT on the property payable in 2006 should therefore be around £23,801. If the intestacy rules were somehow set aside, so that your mother inherited the property, the IHT still would have been due with a further IHT liability in
  14. A lot depends on the actual division of your fathers and mothers estate. Your mother and sister appear to be Trustees and it also appears that a deed of variation (DoV) may have been entered into. The basic rules when someone dies without a Will leaving a wife and children is that £270k goes to wife along with half of everything else and the rest is divided between other descendants. There’s likely to be some nil rate band uplift and also some residence nil rate band available so the IHT is probably less than you think. You and your siblings will need to sort legal title and y
  15. The repayment of debt to you has no tax implications. It should be worth you maximising your nil rate dividend amount and personal savings allowance (potentially up to £1,000 of tax free interest on your directors loan account). Even if you put that money back into the company, you'll be increasing your directors loan account without paying any income tax on money extracted and relent into the company.
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