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david slater

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  • Posts

    485
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  • Website URL
    www.accufy.uk

Profile Information

  • Location
    NW
  • Areas I invest in
    Carlisle, Oxfordshire (Bicester) and SE Birmingham.
  • About me
    I am a property investor with a growing portfolio in Carlisle, Bicester and SE Birmingham. I am also a chartered accountant and am running my own accounting business which focuses on looking looks after the needs of property investors.
  • Property investment interests
    BTL
  • My skills
    Accounting, refurbishments
  • My goals
    Build up portfolio to give me options about how I choose to spend my time and provide a legacy to my children.
  • Interests outside property
    Keeping fit and training and racing in triathlons (when not cancelled due to COVID-19!).

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  1. I’m reading you will pay money into your company in order to pay down mortgage debt? The only tax implication might be that you pay more tax as cost of serving debt is lower so less costs to offset rental profit. to withdraw profit from company your options are repayment of directors loan, salary or dividends or combination of the three.
  2. Why not go 100:0 save having to submit 2 tax returns
  3. Hi, congrats on getting your first btl. I am not based in notts but service clients nationally. Happy to have a chat if you like. david@accufy.uk
  4. Companies don’t pay capital gains tax. Profit on sale of property will be added to rental profits and offset against company costs to work out corporation tax liability when company accounts are produced.
  5. Limited company vs own name depends on your own circumstances, you should take advice before you go any further. however in general. higher rate taxpayers who don’t need to live off profits from property should consider limited company. Basic rate taxpayers (or those with spouse who has low income) and those who need to live off rental income consider buying in own name. Limited company only makes sense if going to buy a few owing to hassle and higher accounting fees.
  6. Can be carried forward until losses fully utilized. No limit. Quite normal for property companies to be loss making initially.
  7. If they are capital purchase costs on an aborted transaction, such as legal fees associated with the purchase, then you can not get tax relief. The argument being capital costs don’t become revenue costs just because the purchase fell through. for revenue expense losses you would simply carry forward and offset against future rental profits until losses utilized. Although it sounds like your costs are capital and so this isn’t relevant. When you purchase a property the capital expenses such as legal costs of the purchase only get tax relief when you sell the property not against rental profit. No purchase, no potential to sell and so you get no tax relief.
  8. It would be refund of higher rate of stamp duty you would be seeking. There is quite a low bar that HMRC would use to assess whether the property was suitable for use as a dwelling or not. The issues you point out don’t sound like they would be grounds alone to not pay additional rate SDLT. there is some guidance here which may be useful to help you. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00385
  9. You will be eligible for principle private residence relief in your current property meaning for the period of time you live in the property you won’t pay CGT. If you have a second home you should make an election to HMRC as to which property is your PPR and therefore you will get relief for.
  10. The additional interest payments if used for business purposes in property company would count as qualifying interest, meaning you can get tax relief subject to restrictions on interest relief. Company could pay you interest but would have to deduct tax at source. This would be offset by interest relief making the arrangement electively tax neutral. A great way to fund a growing property empire. my article below explores further. https://www.accufy.uk/home/turbocharge-your-property-investment-company-with-a-qualifying-loan
  11. If you own property jointly as tenants in common you can make a joint property election to HMRC whereby effectively income is split for tax purposes. if you own the property yourself then you could perhaps look at gifting a share of property to your wife which would be free Of CGT but you would be liable for SDLT if there is a mortgage on the property. Possible short term pain for longer term tax savings depending on your respective tax positions.
  12. On the front page of my website there is a photo carousel you can scroll through which gives 6 things you should ask a prospective accountant. Hopefully you might find it useful. https://www.accufy.uk/
  13. There is quite a low bar that HMRC would use to assess whether the property was suitable for use as a dwelling or not. Being derelict/requiring modernization on its own wouldn’t be grounds alone to not pay additional rate SDLT. there is some guidance here which may be useful to help you. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00385
  14. Property specialist every time. Look at some reviews to see what clients have said about them although always treat with a pinch of salt. If it doesnt work out it is easy enough to move accountants.
  15. I think rates of 4.5% may be coming the new normal unfortunately for limited companies, with the potential to go up further depending on what the BoE decide next.
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