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david slater

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Everything posted by david slater

  1. SDLT charged on the chargeable consideration, in your case the portion of the mortgage being transferred to spouse. Transfer based on original cost meaning gains for CGT purposes would be split like you had owned property jointly from day 1.
  2. You would need to consult lender as you would adding another person to the mortgage so not straight forward but a broker would be able to advise more. I would imagine it is not uncommon with married couples though and they are already financially integrated so not overly complex to underwrite.
  3. You don’t pay higher rate stamp duty for transfers between spouses. Other than that bands and accounts are the same so may not need to pay any if share of mortgage transferred is below threshold (changed in mini budget).
  4. Your company could manage the property and charge a management fee at a commercial rate, this would decrease profit in own name.
  5. No capital gains tax if transferring to spouse but stamp duty to pay if property has mortgage. Tell your solicitor you want joint ownership to be as tenants in common and for them to produce a deed of trust. Then submit form 17 to HMRC.
  6. Married couples and those in civil partnerships are treated as a single unit for purposes of higher rate stamp duty. there would be a stamp duty liability if transferring ownership of property after you were married if there was a mortgage on the property.
  7. Hi Dhiren happy to have a chat if you need an accountant. david@accufy.uk
  8. Big question, depends on your circumstances, take professional advice etc. If buying in own name section 24 (restrictions on mortgage interest relief) doesn't apply to the commercial element and at all if buying with cash (but useful to think about in case with to raise finance in the future). I would factor in Annual Tax on Enveloped Dwellings to your plans which might impact you if you live in the property and it is owned through limited company. depending on value of property. Limited company you would be looking at repayment of directors loan, dividends and salary to extract profit from the company if you went down that route.
  9. If you have a good chunk of equity in the property you may be able to transfer into limited company without the company having to pay a cash deposit, instead by company owing the director the deposit as a directors loan. Worth speaking to a broker about this. Also current interest rates might make it difficult to refinance to the desired levels due to ability to continue to meet lender stress tests.
  10. 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.
  11. Why not go 100:0 save having to submit 2 tax returns
  12. 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
  13. 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.
  14. 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.
  15. Can be carried forward until losses fully utilized. No limit. Quite normal for property companies to be loss making initially.
  16. 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.
  17. 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
  18. 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.
  19. 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
  20. 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.
  21. 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/
  22. 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
  23. 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.
  24. 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.
  25. If the loan purpose is wholly and exclusively for your property business then you can offset loan interest subject to the restrictions on interest relief that you refer to.
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