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taxantics

Established Member
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    250
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About taxantics

  • Rank
    Super-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

1,068 profile views
  1. If you replace your main home (sell your old home when buying a new one), you shouldn’t pay the additional rate of SDLT. You shouldn’t pay any SDLT if purchase price below £500k and you complete by 30 June. If the s24 mortgage interest relief restriction is an issue and you want to build your portfolio further, you might want to consider reorganising your portfolio.
  2. If you are a director of a company, you can claim £6pw as a home worker if you operate the business from home: https://www.gov.uk/tax-relief-for-employees/working-at-home for the self employed (which could include property business owners if there’s enough activity), the rate depends on the time spent in the business: https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home
  3. The non residential rates of SDLT should apply so no additional rate. Other taxes would depend on intended use and that would also influence how you deal with the title. Good luck!
  4. Firstly, I’m sorry to hear of your health issues. It depends on the likely profit from the flip as to whether corporate structuring is worth considering. Otherwise a family partnership attaching any capital growth and profit to other family members and you being an equity only member seems the best option. This would allow beneficial use of personal allowances and basic rate bands with estate planning built in. Good luck!
  5. I understand the additional cost that comes with corporate routes which is why I suggested a partnership as a more flexible way of sharing income in a way that doesn’t follow the equity.
  6. It depends on your preferred method of hunting. Use a gun if you want to inflict pain and a net if its just for fun
  7. There are better more flexible ways to achieve your goal without making a declaration that your wife has 99.99% of the equitable interest in the property. The form won't stop you from making a declaration that your wife has a 100%. You may want to consider a partnership or a company as a more flexible way of managing assets and income.
  8. You’ve got it and yes, mortgage companies do allow this although I’ve seen some solicitor’s have a melt down getting their heads around it 🤪
  9. It should be three separate transactions depending on the relationships (husband/wife or brother/sister for example are connected and the linked transaction rules could apply). There’s usually no SDLT on outright gifts unless there’s an assumption of debt. The actual market value should be less than £40k due to only having a minority interest. If the other family members do become liable for paying a mortgage, then there could be a SDLT liability on the proportionate debt assumed (depending on the individual circumstances) when the additional 3% rate of SDLT may be payable. Donee
  10. One company should be fine for a refurb and keep as B2L strategy unless you get in the realms of the construction industry scheme (£1m plus of refurb work), commercial to residential conversions or renovation of property empty for 10 years plus when VAT registration becomes useful and you’d probably want to avoid partial exemption VAT treatment. Unless there’s a commercial reason to have multiple companies, only your accountant benefits from the extra work! Good luck!
  11. It’s only a gift if you can’t get anything back! You either provide a loan to the company or subscribe for more shares. For a loan, the double entries are you debit bank account and credit directors loan account (DLA). When profits are available, you can repay the DLA by crediting bank account and debiting DLA. There’s no tax implications on repayment of a positive DLA. For shares, you debit bank account and credit share capital (and share premium account where capital injected exceeds number of shares issued at par value). It’s rare for capital introduced to be for shares
  12. You might also want to consider the wider issues if your tenant is running a business from your property and check your insurances and mortgages. It’s usually not an issue though. It does sound like your tenant is claiming an element of the rent against their business profits. There’s nothing wrong with this as long as the amount claimed is justifiable and that would depend on the level of activity. I think it’s something like that if they’re claiming more than 40%, it could trigger a movement into the world of business rates rather than council tax. Your tenants accountant should discuss any
  13. The tax issues with negative directors loans are cumulative. A directors loan that remains unpaid on the date that the corporation tax is due attracts an additional 32.5% tax charge payable by the company to HMRC and a benefit in kind tax charge reported on a P11D with employers NIC payable by the company as well as an income tax charge on you. When the loan is repaid, the company can claim repayment of the 32.5% charge. If the loan increases, then there’s a further 32.5% to pay and increased P11D reporting and taxes. As David pointed out earlier, it’s possible you have a positive directors lo
  14. Hi Seb, as long as you’ve ran the numbers and it stacks up for you considering extra admin costs and potential higher interest, then all good. I advise people on company versus personal ownership on a daily basis. If the property being transferred to the company is and always was your own home, then no CGT. The accounting would usually be to credit directors loan account because the transaction is treated as a sale and purchase for tax purposes even if you never intend drawing the equity transferred. Think of it like you can’t really make a gift to a company you own all the shares in as ultima
  15. The £40k is capital (loan) and the interest on it is a cost...good luck!
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