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Found 232 results

  1. Hi I have set up a company/svp in order to start to build up a property portfolio. I was looking to do interest only (as landlords with a company will be able to continue to declare rental income after deducting the mortgage interest only payments) and make over-payments annually upto 10% so that i can pay the properties off. If i do the overpayments will that have any impact on the tax deductable nature of the calculation please ? or will these count like repayment mortgages and not be tax deductible. Any information here would be very useful. Thanks
  2. Hi Guys, Was just wondering if anyone could help? Got a couple of questions here on Tax that you maybe able to answer.....? 1. Could I claim back tax on a lease extension and if so what type. (Revenue or capital) 2. I have remortgaged a BTL in the past 6 months - can I claim any tax back on Tax on this and if so what type? 3. How much could I claim for using a room as an office as I manage my properties myself? 4. Can I claim anything for last years accountant fee’s Thanks, Neil
  3. Hi My wife and I are looking to convert the house we live in and own to a rental property (our first one) and move into somewhere bigger as we are starting a family. Is additional 3% stamp duty due on the new house we are buying? Is there anyway I could sign full ownership of our current house to the wife and I buy the new one in my name so we are not considered to have 2 houses and thus liable for the extra tax? Is it possible to pay the extra tax if we have to on the value of the smaller cheaper house we currently own instead of the more expensive new one? Just looking at ways not to shell out an additional £12K with our first baby on the way and the wife reducing her hours at work. Any advice would be much appreciated! James
  4. Hi everyone, I hope you are all safe with the covid 19 situation and all. Im in a position where my family will be selling a property and with a portion of this I will be using it to set up my own company and invest using this lump sum. To make this as simple as possible my mother will be selling a property for £300k. From that my mother will be buying a £200k house through a LTD company having £100k left over for retirement. Myself and my sister are looking at the best way to minimise the tax and be able to secure the £200k property for us in the future. Once the £200k property has been purchased we would refinance it and split that between myself and my sister (going off the fact the refinance sum would be £150k). I would use this money to invest and we would split the repayments in half. What I am looking to do is to purchase multiple properties through a limited company (thats not to do with my family) with that investment. If the original £200k property was bought via a company that myself, sister and mother set up, then refinanced, could I use that money (the £75k) to invest through my new company (my investment business) without having to pay taxes on it? Essentially moving £75k from one limited company into my own without tax implications (eg paying dividens as I would be reinvesting it and not spending it on myself (eg cars). So basically how can I access the funds from the refinanced property to use in my new business without paying tax on it. I appreciate this is a LOOOOONNNGGGGG question but I have scoured the internet and after reading many books thought I would try my luck here Any feedback is welcome Many Thanks David Tate
  5. Hi, wondering if anyone can help me with some knowledge. bought a property for £250k with partner in 07/2013 and occupied it until 01/2017. Moved abroad for work and let the property out from this date. Now returned to the UK and decided to sell up. Tenants move out end of 01/2020. Expected sale value £350k. Is there CGT to pay? Reading recent magazine and article (attached) suggests CGT tax situation would be considerably worse if sold in FY20? any feedback really appreciated. thanks
  6. Hi PropertyHubbers, I'm new here and wanted to say hi. A short summary of my situation: I'm currently living abroad and own a property on the outskirts of London. Thinking of moving back to London in the summer and weighing up possible strategies that would enable me to work part-time and focus on property investment/trading the rest of the time. There seems to be a lot of knowledgable members on here and I would be keen to listen to any advice that might help. Initially, I was thinking about focusing my time on flipping property and then reinvesting profit into BTLs (I appreciate this is harder than I've just made it sound!). Given everything that's happing with COVID-19 though, I'm wondering if I'm better continuing to work full-time and investing in property to hold onto for the medium term before trying to add value and sell. Another couple of things one of you may be able to offer advice on: 1) I'm still trying to get my head around tax implications with owning a property already and whether it's worth setting up a ltd company? 2) The property I own is mortgage free. Would I have difficulty releasing the equity it if I was working part-time? Thanks for your time guys. If you have any thoughts, experience or suggestions, I'd love to hear them. Stay safe. Kris
  7. Hi everyone! Always been eager to post on here and finally have a question! My situation is that I have a single buy to let flat that was purchased in a company name. (I set up the company a couple of years ago) I'm currently achieving a pre tax monthly profit of £270. (After monthly mortgage (3.7% Interest only 5 year fixed with Paragon), Service Charge and Ground rent has been taken away) I've always had an accountant lined up, however they are wanting a monthly fee of £62.50 plus VAT for their services. For that they will offer; "the preparation of a small set of Ltd company accounts and associated company tax return with minimal levels of advice and assistance, as necessary." As this is my first buy to let and I'm relatively inexperienced, this seems like quite a lot of money? I'm just wondering whether I should do the first years tax return myself? Has anyone else done this or should I just bite the bullet and go with an accountant? I can understand that having an accountant is beneficial if you have quite a lot of properties and the accountancy fee remains the same, however I'm not quite so sure if it's your first. Would love to hear peoples views on this. Much appreciated Benji
  8. Hi, I very frequently come across this word "cost segregation", many say it is a way to reduce taxes. Can someone give me a clear picture on it.
  9. My Father recently passed away and has left his 6 BTL properties to my Mum. Some of these are unencumbered and others have high interest rates. We would like to transfer these to mine and my Brother's company and pay my Mum a wage from the rent. With the obvious cost of CGT and Stamp Duty will we have to purchase the properties? If so can she 'gift' us the deposit without physically transferring us the money i.e. buying the property at a 25% discount? I'm on the waiting list for Property Hub Tax but if anyone has some useful advise I'd greatly appreciate it. Thanks Laurie
  10. Hello. I have taken the Property Hub course on Tax's, where it was explained that if you do not want to live off the rental income and you just want to recycle your money straight back into the property, then buying in a limited company is the best was to save. It was shown that corporation tax is lower than income tax (depending on what tax brackets you are in, it can be 21% less), however, a dividend tax is payable if you wanted to withdraw from the company. My question is if I do want to live off my rental income, is there any point looking into buying in a limited company. Very interested in hearing peoples thoughts. Best regards, Alex
  11. Hi, First time on the forum. I have recently set up a limited company with a close friend to use as a SPV, which we have just bought our first property using. I understand the tax implications regarding an ltd, we will not take money out of the company at all, instead, just pay corporation tax and reinvest the money in the business. I own a residential property under my name which I live in and currently rent one of my spare rooms out for £550pcm, which is in line with the rent-a-room scheme guidelines. I am planning to move out of the house this year and into a rented flat with my new partner, but, renting the house out as a 4 bed HMO in the process. My problem comes whereby I am a 40% tax payer from my day job so I want to have the 4 tenants paying straight into the business account, essentially reducing my tax bill by 21%. The rental income is not intended for personal use at all, I put all my savings into the company at the moment, I just want to avoid paying 40% tax on the money I would put straight into the business anyway. Long story short... As a director of an ltd, can I have rental income paid into the company account from personally owned property in the aim to reduce my tax bill. Thanks for the help! John
  12. Hello all, I'm looking to buy a BTL but unsure on whether I NEED to buy within limited company or not. I'm just below the HRT tax band currently but another property will put me into the HRT tax band, and therefore i have been thinking to buy within a Ltd company. However, I'm aware that making a pension contribution would extend the tax band. Therefore, if my assumption is right, surely this would be a quick and easy way of mitigating the HRT that would otherwise apply? I can't see this being covered anywhere so i would be most grateful if someone here with experience could enlighten us. Many thanks
  13. Hi All, I am currently in the process of helping my mother sell a buy to let she owns after my farther has passed away and have found out she has not declared any income from this for the whole period she has owned it. Does anyone have an accountant they could recommend to help with this situation that I could speak to? I am based in London and she and the property is based in the midlands. Any help would be much appreciated. Thanks, Dave
  14. Hi All, I have two properties on BTL mortgages and looking to remortgage and move them into limited company, id like to take advantage of multiple dwelling tax relief, to do this do i have to move them at the same time or within certain time frame? How does this work with regards paying the stamp duty? Do i pay then claim back? Any help would be much appreciated. Thanks
  15. Hi everyone, I have been reading Ian Wallis's book (highly recommended) and it says you can use remortgage costs as a revenue expense, provided you are releasing funds to purchase another investment property. Now I have incurred all these re mo costs: £2400- early repayment fees £500- valuation and application fees £500- solicitor fees £100- broker fee Painful yes. But do they all count as a revenue expense, thus tax deductible? This could really numb the pain! Thanks in advance.
  16. Please can someone help! I am in the process of buying my first property through my new ltd company. My guess is it will complete in 6 weeks or so. It is a 3 bed property that will be a single let. The property is perfectly habitable now and could easily be rented out as it is, however I want to do a fairly big refurb. E.g. replacing the kitchen and bathroom, new carpets, redecorate etc. This will mostly be a like-for-like refurb and I don't think the majority of it will count as a capital expense. If I do this work before I first put tenants in, am I right in understanding that I cannot claim this work as an expense as it involves getting the property ready to be let. However if I put tenants in first, then when they leave I decide to do the refurb, I now could claim this as an expense as the "rental business" would have already started. Have I got that right? My big question is... *What is the minimum period of time I would have to have a tenant in my property before I could class any replacement refurb work as a revenue expense?* If I rent the property out on a 1 week AST, then do a big refurb, clearly this will turn some heads with HMRC. So what is the magic number? 1 month? 6 months? I hope I can get some wise responses on this. Many thanks!
  17. I'd be interested if hubbers have any experience or advice on this... I'm an expat living overseas for most of the year, but spend some time in London. I have had enough of hotels and would like to buy a flat to stay in when I am over. But I would also like to rent the flat out when I am not there through a professional company. Longer term, I would like to keep the flat possibly for sole personal use or to give to my kids. At the moment I would only need the flat for around 30 days a year. Clearly the yield in London is not strong, but this does not need to be a money spinner. I have a small property portfolio (mainly outside London) which is run through a Ltd company. Question is whether I should buy the new flat through the property company or whether I should buy privately as a (second) home or as a holiday let. I'm only at the start of researching this and will ultimately take professional advice, but it would be great to hear of any similar experiences/advice! Cheers all!
  18. Hi posting for the first time Happy New Year, keen to find a property a tax expert any recommendations would be welcome ?
  19. Hi everyone. I'm new here but listened to Rob and Rob's podcast for quite a while. I'm hoping someone can help me. This is the first year I've had to do tax returns (I own one BTL since January 2019). There is plenty of advice online about section 24 and I'm aware 50% of it can be offset for the tax year 2018-2019. But I can't find anything about what the tax rules are for interest on other financing. I remortgaged my residential property to pay the deposit for my BTL property. Can I claim the interest I pay on that as an expense for tax purposes? Also what about if I borrow the money for the deposit from a bank or relative and pay interest on that? Is that tax deductable? Anyone's help would be much appreciated as I imagine this is quite a common situation. Thank you
  20. Hi, I’m looking to gift one of my personally owned BTL properties to my wife in order to benefit from her lower tax bracket. I’ve read that property can be gifted by either (1) legal ownership change or (2) beneficial interest change – the main difference between the two that beneficial ownership gives an economic interest in the property (i.e. share in: rent proceeds/ sale proceeds/ tax benefits) but no legal ownership & control. Has anyone gone through this process? Any advice on how difficult/straightforward it is? Cheers
  21. WOW do I need this website and forum! Talk about venturing into the unknown.... scared and excited....... So, we have an idea to purchase a property for use as a furnished holiday let. I have started to read up on all it entails and have bought Iain Wallis Avoid Property Taxes and his Essential Tips book and have started to go through the helpful videos on this site. However I still have some questions which if anyone can point me in the right direction would be greatly appreciated in terms of how we secure the funds. Option 1: Remortage home (owned outright) and use the funds to purchase a holiday let. However, I am told that I can’t then offset the interest against the holiday let - is this correct. What are any other pitfalls of this approach?? Option 2: Secure a holiday let mortgage and raise the funds to put down a deposit (savings topped up with a possible bank loan). I understand that the interest on the mortgage could then be offset against the holiday let income. The benefits I believe it that our residential property remains safe, mortgage interest can be offset. Downfalls are that the interest rate will be higher and we have to meet criteria on holiday let to be accepted for a holiday let mortgage. So if anyone can advise on this that would be great as I seem to be getting myself stuck in a rut trying to find this out. Then, I belive, and again, please advice, we can purchase the property in joint names (myself and husband) but apportion the income as we require as one is on a higher tax code and the other a basic tax code. Also, if any one has any recommendations for a property accountant that too would be great. There’s a wealth of knowledge out there and I’d really love to learn from those who have been and done it with the hope that I can offer some guidance back to others once I’ve gone through it myself! Thanks
  22. Hi, I own a limited company which is no longer being used. I want to take the money in this business and transfer it to a new company for property investment, and then close the original company. I have already paid corporation tax on the money in the original business. Is there additional tax to pay when I transfer it to the new company? Or can I just transfer all of it without being taxed? Thanks, Emily
  23. Just trying to get my head around tax... You own a limited company, which in turn owns a rental property which makes £5000 profit each year. Within one financial year you reinvest all the profit on a new rental property owned by the company. In this example, is there any corporation tax to be paid? Or does the fact that you've reinvested the money mean that your business has no longer made an overall profit and therefore you don't have a corporation tax bill? Thanks :-)
  24. Up to now I have successfully self managed my property affairs without the need for an accountant. I now come to submit my first CT600 for my property company (for its first full year). I have come across the following obstacles on the HMRC web site after I logged on for my Property Co.: Unable to submit rental income more than £5200 per annum Property expenses cannot exceed the rental income My rental income in the first year is more than £5200 (good) but I also had a lot of expenses so I made a loss in that first year Please can anyone help with how I submit my Corporation Tax return in this situation and other people's experience? All of the accountants I have asked have just said that I need to come to them and use 'software'. Surely having come this far I can get it over the line somehow in a cost effective manner without needing to pay for additional services that I do not need Other people's experiences who have not reached for an accountant to do it for them would be most welcome. Regards
  25. Im new to property investing and wants to do flips. i have looked at a hypothetical scenario where i purchase at a price of £145k and resale at £200k. Having looked at the capital gains tax i need to pay on the HMRC website, i can use solicitor fees, stamp duty and estate agency fees against the sale price but am not allowed claim the refurbishment costs as they are repairs not improvements. HMRC have calculated the tax at circa £9k at 28% tax rate. I have calculated a developers profit of £20k so half of my profit would be taken in tax. am i calculating this correctly or is my hypothetical scenario realistic? please help!