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  1. Back again! Quick question this time, I'm due to get £750 cashback on mortgage completion. Not sure how to account for this.. it's income but apparently not taxable. I feel like I need two extra lines on my P&L for non-tax income and non-tax expenditure (expenses that are revenue but not tax deductible) Link below is all I could find on the subject Too Good to be True? – Cashbacks and Tax for Property Purchasers - Tax Insider
  2. Hi all, Looking for a good broker to use now in building my portfolio, I will be purchasing through limited company and for BTL (obviously). Does anyone have any recommendations, how have you found no-fee brokers vs fee brokers and value?
  3. Hi all, My solicitor has asked me: I believe this relates to Panel 8. of the transfer deed: If I am selling my property my company for £200,000, the company is getting a mortgage of £150,000 and I "lend" them the £50,000 via a Directors Loan. In my mind this is very simple.. The consideration is £200,000 as the directors loan is still monetary value. The stamp duty would be whatever is liable on all £200,000 at time of completion. For sake of ease I would say £7,500 if it completes 01/10/2021. Are my thoughts correct? Thanks Seb Edit: From online: However under Section 53 of the Finance Act 2003 for transfers between an individual and their company the chargeable consideration for such transfers will be not less than the market value at the effective date, of the property transferred, irrespective of the consideration (or lack of it) actually passing. This is what I expected. Edit 2: I need converyancing help in filling out AP1 and TR1 forms. Assistant: Thank you. Can you provide any more details to (justanswer.co.uk) Seems to have the same question answered as I suspect too. Still looking for a bit of reassurance.
  4. Hi all, I am in the very fortunate position to have family assets abroad, we are currently divesting from one region of the world and have significant cash in hand ready to reinvest. I currently have a BTL SPV Limited company in the UK which holds my BTL investments/income. What structure should any foreign investment in my Ltd take? I do not want to give up control because this will hinder my ability to get mortgage finance as the director/shareholder of the company in future. I was thinking a loan agreement? I also don't want to make myself or company liable for vast amounts of tax if any investment is seen to be income. Thanks in advance! Seb
  5. Hi all, Just a few questions on capital expenses, conveyancing fees are typically capital. So held on the balance sheet until it can be offset against any CGT from the sale of the property to which it relates. So would I just journal this to a long term fixed asset account and let it sit? DR Fixed Asset "Capitalized Property Costs" CR Bank Next would be mortgage product fees (sometimes called arrangement fees) I've read on this forum these can be expended immediately even if they are added to the mortgage amount and interest is paid on the amount. So at 1% of a mortgage of £150,000 the accounting would be: DR Expense 1,500 CR Mortgage Liability Account 151,500 DR Property Fixed Asset Does this look right? Finally mortgage application fee, some banks ask for a fee to even apply for a mortgage (Paragon). I'm not really sure if this is capital or expense but I would lean expense if mortgage product fees are expensed then this surely would be to? Thanks in advance, Seb
  6. This makes sense to me. The followup would be, can I provide a loan to the company in the form of equity I personally have in the house? DR House Equity CR DLA Basically, if I gift the equity to the company, I get no benefit from doing so. If I loan the equity to the company I can use the fair value of that equity to extract cash from the company tax free. Do BTL mortgage companies allow this?
  7. Hi, Any further advice on this would be appreciated as I still don't have clarity. How does the SPV LTD account for the gift of equity that I personally have given it as a deposit on a BTL property? Can I account for it as a directors loan and extract the equity gifted out as cash. I know there are no CT implications on DLAs with no interest. It's moreso about the accounting treatment of the gifted equity. Seb
  8. Hi Taxantics, I'm aware of the SDLT implications; however I'm currently -£10k from paying the 3% surcharge on the second home. If I transfer the previous main residence to the SPV I can get a refund of £10k. Less £6k SDLT on transfer to LTD is £4k back, CGT would be roughly, £186k original price -> £200k MV = CG of £14k less personal allowance £12.3k = £1.7k * 18% CGT = £306 pounds due. So transferring would return to me £3,694 net. My aim is to build a portfolio, starting with this property but expanding on. I don't need to extract any income and will seek to reinvest cash into further BTL's. My question was really around the accounting for the transfer in the LTD's accounts. Can I really give a directors loan in equity and expect it repaid in cash? I as an individual own 60% of the property which I will gift to the LTD or "loan" it, the property will use this as deposit against the 40% BTL mortgage. Is this allowable? I'm fairly sure the gift of equity is, but the benefit of cash extraction via calling it a directors loan would be substantial. Thanks Seb
  9. Hi all, First and foremost what a great resource this website is, I look forward to ingesting all the information available. I am currently buying my second home and will have to pay £10,000 SDLT surcharge on second homes. I am looking to get this refunded by transferring my current property into an SPV, thereby giving up personal ownership (this isn't the only reason!) and beginning the process of becoming a BTL landlord. My first property will be let (consent to let already given) as soon as I complete on my second and I will run this as an individual for 6 months until my residential mortgage fixed term ends and I can remortgage to BTL with a BTL provider (actually a sale and purchase arrangement given transfer from individual to LTD). My questions are around the accounting for and the treatment of the transfer from myself to the SPV LTD. The current MV of the property is £200k, and let's say I have paid of £120k so £80k left on the mortgage. This gives a fairly healthy LTV of 40% (will come back to this). Firstly, I know I can gift the equity of the property to the LTD and use this as a deposit for the BTL mortgage. But what is the accounting for this in the LTD? DR ASSET @ MV - 200k CR MORTGAGE - 80k CR EQUITY GIFTED? - 120k I see a lot of people saying that they will transfer their equity into the LTD as a directors loan replacing the EQUITY GIFTED above with a DIRECTORS LOAN ACCOUNT. DR ASSET @ MV - 200k CR MORTGAGE - 80k CR DIRECTORS LOAN - 120k Is any mortgage provider going to accept this, do they even care? I understand the tax implications are that as long as there is no interest on the loan I can extract the loan amounts without paying tax either in the LTD or personally. Have I got that correct? Secondly, and this might not be the right section for this but as the LTV is 40% I'm unlikely to benefit from any reduction in interest rate below an LTV of 60%, I'm wondering if I should "extract" this 20% as cash either from the mortgage (will they let me?) or buy using substantial overpayments made on the existing mortgage and freezing my current payments (so almost like a payment holiday). I think that's it for now! Thanks in advance, Seb
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