Good video and very helpful. My parents have an estate in excess of £1m and are looking to gift me £500k. Do both of them have to live past 7 years to make it tax exempt and what happens if one dies? What happens if I spent it all and they both died within 3 years - I’m guessing the taxman would still want payment from me? People could come unstuck with this so would be good for more about these sorts of things if you did a follow up video. Thanks
@DC-yj5nj9 күн бұрын
Thank you for clarifying that you need to write to HMRC to preserve a capital loss for the future if you are not completing a self assessment. Much appreciated.
@kimberleyshapcottpropertytax3 күн бұрын
your welcome
@louiseknight95069 күн бұрын
How about if the company director or his family member lives at the property?
@kimberleyshapcottpropertytax3 күн бұрын
This will depend on the agreement in place and whether it is formally rented or not. There would likely be a benefit in kind if there is no rent.
@marytheresahay975111 күн бұрын
My husband left all his estate to me when he died so as I understand it I am allowed to have £650,000 before being liable for inheritance tax. George Osborne then added the family house to that amount making the tax free amount £995,000. I am about £200,000 under that amount. If I gave my two children about £50,000 each now while I am under, if my house went up in value say in three years to take me over the £995000 threshold would inheritance tax be due on what I had given them?
@maxwellfoli169512 күн бұрын
You are brilliant! And Just weathered yourself a new subscriber
@kimberleyshapcottpropertytax3 күн бұрын
Welcome.
@thepropertyflipper13 күн бұрын
..and if you withdraw the funds out of the company, you then pay personal/dividend tax. It's a real problem for flipping as a side hustle where you have other income. Makes the actual tax rate very high.
@tamshora09016 күн бұрын
Hi Kimberly, thanks for your very useful videos. I have got 2 questions plz. First, can i buy a property on any kind of limited company such as catering or transport company for example ?. Second question , what is the best SIC code for property limited company? And does it make any difference if my property business is trading or investment? Thanx in advance Kimberly 😊
@kenlizzio709616 күн бұрын
Interesting. Thanks.
@tamshora09017 күн бұрын
So how the HMRC will tax the individual if it isn't considered a Capital gain?
@DavidSmith-do6ji19 күн бұрын
Haha my audio is absolutely fine :-)
@DavidSmith-do6ji19 күн бұрын
Maybe invoicing will benefit taking out mortgages and possibly if you want to contribute to your pension.. just ideas..
@Jeffybonbon20 күн бұрын
Its not an easy Tax to understand and its a very unfair tax Its caught out a lot of Landlords who work for a living as they use there allowances in the employment I am lucky being a full time landlord and i can use my full 50k allowance I can work with it and make sure i claim every penny i can in costs of running the houses i own I cant see it changeing and with the Allowances being frozen its a problem trying to get the best BTL Mortgage rates is vital and rates are dropping rents have gone up so landlords should cover the extra costs of S24 good video
@michelevardaro220520 күн бұрын
Hi Kimberly, great contents in your channel, thank you! If I have the assets under a limited company, and I do not take any profit out of the company, do I need to do additional student loan repayments anyway? What about if I want to take the profit to do overpayments of the mortgage? I also have my normal 9 to 5 job which through which I am already repaying the student loan, does that affect anything?
@jackturner573621 күн бұрын
Possibly a complicated one here. My business has paid for a warehouse extension on land / premises that I do not own. We have paid for the structure / walls / flooring, job lot - and agreed to not pay monthly rent. How does this work in respect of tax and relief? TIA.
@MrRanjodh2623 күн бұрын
Hi, if i have a LTD company, the buys house to then let out. And i let them out fully furnished. Would the Furniture be classed as Expenses or Asset (can i claim through AIA?. Thanks
@DavidSmith-qn8fl24 күн бұрын
Very useful information, thanks for this 👍
@meighme854025 күн бұрын
I have found it really hard to find any banks that will allow you to open a Holding Company with SPV - anyone have an idea on where to go? Tks
@nepaninz28 күн бұрын
Thank u.
@kimberleyshapcottpropertytax26 күн бұрын
You're welcome
@SGIQ729 күн бұрын
Hi Kimberly, this is very helpful. I read somewhere that basic rate taxpayers are not impacted by S24, but that appears incorrect? Also do you a personal tax consultation, if so at what fees? Keep up the great work 👍
@kimberleyshapcottpropertytax26 күн бұрын
When a basic rate taxpayer gets close to the higher rate limit it will have an impact. We offer tax consultations if you contact us at Shapcotts Accountants. www.shapcotts-accountants.co.uk
@Carl-tv2ewАй бұрын
Great content as usual Kimberley thanks
@kimberleyshapcottpropertytax26 күн бұрын
Thanks
@user-ms6bm5ll6cАй бұрын
Hi I hope you're well. I saw a video of yours earlier in regards to selling a residential property that I live in to a LTD company to let out as a buy to let, to then purchase another residential in my sole name. Would you be able to provide advice/services if I was to contact you in this regard? Many thanks.
@kimberleyshapcottpropertytax26 күн бұрын
Yes, absolutely. If you get in touch we can get a date in the diary.
@humandave5417Ай бұрын
What about registered office address for the company?
@kimberleyshapcottpropertytax26 күн бұрын
You can have this as any address either at your own home or office or there are services that provide this as an option so your personal addresses remain confidential.
@pritenpatel4547Ай бұрын
Really helpful video. I wasn’t aware the reduction considers 3 values. What if the rental income is lower than the finance cost?
@kimberleyshapcottpropertytax26 күн бұрын
The finance cost will only lower the income to zero therefore if the finance costs are higher then these will be carried forward to be used in the future. This will also apply if your income is not above the personal allowance.
@tamshora090Ай бұрын
Great 👍
@kimberleyshapcottpropertytax26 күн бұрын
Thank you 👍
@domthugdomАй бұрын
I really appreciated how you explained it so clearly and simply
@kimberleyshapcottpropertytax26 күн бұрын
Your welcome.
@matthewgrainger3658Ай бұрын
great video and your a lot better looking than my accountant !
@kimberleyshapcottpropertytax26 күн бұрын
Thanks.
@PhillyTTTАй бұрын
Please start using Chapters in your videos
@kimberleyshapcottpropertytaxАй бұрын
I'll see about getting them added onto the videos shortly. Thanks for the feedback.
@TheDaisey68Ай бұрын
£33 😆
@TheDaisey68Ай бұрын
Gary waterman
@theadventuresofvictorandel9044Ай бұрын
Thank you so much, this video was really helpful! X
@kimberleyshapcottpropertytaxАй бұрын
Glad it was helpful!
@darrenlahr1819Ай бұрын
This was a very insightful video, thank you. Have a query about how I would apply these calculations to my situation. I have lived in a property owned by my parents jointly which was purchased 25 years ago, this is a shared ownership where 50% of the property is owned by them and the rest by a housing association. My dad passed away and I inherited his share about 6 months back. How would I calculate PRR given this assuming I sell? Namely following your example what purchase price should I use? Would I use the value of the property at the time I inherited his share? Or would I need to use the original purchase price from 25 years ago? Also am I right in assuming that I would scale this numbers to align with the fact that I own '25%' of the property? Thank you!
@kimberleyshapcottpropertytaxАй бұрын
You would take the value that you inherited it at. A valuation would need to be done at this point in time to assess what the value was at his passing. You only need to account for 25% of the gain in your calculation as it is based on what you own of the property.
Ай бұрын
Do you know how strict the time frame is? Say the transaction completes 3 years and 1 month later.. would that be an automatic rejection from experience? Thanks
@kimberleyshapcottpropertytaxАй бұрын
I suspect you would need to have reason for why it wasn't within the 3 year time frame i.e. that was the intention but there was unforeseen delays which made it go over the three year limit.
@house9464Ай бұрын
Salary B4 tax if your rents are only 20k then I am assuming the salary isn't coming out of the profits therefore implying this is a work salary from PAYE?? If this is the case then you've already paid tax on it and in your example your not taking away the tax portion in your computation IE a pre tax salary and rental income = 56k putting Yiu in the higher tax bracket before you've even started ..
@kimberleyshapcottpropertytaxАй бұрын
For rental profits you take the rental income and rental expenses to give your rental profits which are then added into the tax calculation to assess the total income. The only part not included before the tax calculation is any finance costs such as mortgage interest.
@shamolahmed2832Ай бұрын
This is so useful. I’ve been looking for a video and how to guide for awhile and this was spot on! Cant believe there’s not more videos on this - thank you so much. Just need to finalise my sale have 2 months yet
@kimberleyshapcottpropertytaxАй бұрын
Glad it was helpful!
@kimberleyshapcottpropertytaxАй бұрын
I'll be able to share more next year when I go through the process personally as well.
@DavidSmith-do6jiАй бұрын
Thank you, I must say I didn’t struggle to understand what you’re explaining.. pretty clear to me considering you’re talking accounting 🙈🤣
@kimberleyshapcottpropertytaxАй бұрын
Great to hear!
@James__bond007Ай бұрын
i know this is not property business related but lets say i had a dine in establishment, and i was expecting to make a profit of 50k but instead i decided to buy a 40k art piece to hang in the resturant, leaving 10k profit. Would i be liable for the 50 or just 10?
@kimberleyshapcottpropertytaxАй бұрын
From my understanding if it is creating a desirable setting or ambience in which to carry on a trade then this would be allowable for capital allowances including Annual Investment Allowance. Check with your accountant for specifics to ensure it fulfills the criteria however as a general idea it would work.
@James__bond007Ай бұрын
@@kimberleyshapcottpropertytax thank you
@ashwincbhindi7542Ай бұрын
Can you do a similar calculation without any salary ? My net property income is £57000 and no other income
@kimberleyshapcottpropertytaxАй бұрын
I will look at doing something with sole property income when I am recording next and get it onto the channel in the next few months.
@harrietsote5707Ай бұрын
Can I get equity from my current resident property and transfer the property it to a ltd at the same time?
@kimberleyshapcottpropertytaxАй бұрын
You would be able to however there would be stamp duty payable and depending on the position capital gains tax to be considered.
@ammadhabib7099Ай бұрын
Thankyou Kimberly, this was very useful for me .
@kimberleyshapcottpropertytaxАй бұрын
You are so welcome!
@artist10202 ай бұрын
Hi Kimbderly, another great video. Cab i set up Holding company now and then set up other subs at a later stage as I go onto to do other strateries in my property biz, e.g. Rent to Rent SA etc?
@kimberleyshapcottpropertytaxАй бұрын
You would be able to add subsidiaries in the future.
@artist10202 ай бұрын
Hi Kimberly - that was a very thougher and informative presentation. I am setting up a Deal sourcing and Deal pasckaging limited company and will look to your channal in future. Well done.
@kimberleyshapcottpropertytaxАй бұрын
Glad it was helpful!
@christopherbell6602 ай бұрын
Is stamp duty a cost we can claim as an expense?
@kimberleyshapcottpropertytaxАй бұрын
This is an expense that will be taken into account on the capital gains tax calculation.
@jamesrushe34422 ай бұрын
AIA guidance states "tools such as ladders and drills". As a limited company, can i claim back if i purchase a table saw in our first year as this is necessary for some carpentry tasks? It will be used solely for business tasks
@kimberleyshapcottpropertytaxАй бұрын
Yes, absolutely
@roscoenash10032 ай бұрын
Can you not HMRC to link to you, I've actually learnt what to do and safe myself stress for the future. Would donate but barely breaking even after so many expense rises, Thanks
@kimberleyshapcottpropertytaxАй бұрын
Thanks for the feedback. I'm glad you found it useful.
@nikkion21402 ай бұрын
Thanks for this valuable point.
@kimberleyshapcottpropertytaxАй бұрын
My pleasure!
@nikkion21402 ай бұрын
Can you gift to a Trust which only comes into existence later (sorry for asking "stupid" question? The idea is "analogous" to gifting to future grand children etc.
@kimberleyshapcottpropertytaxАй бұрын
You cannot gift to something that is not in existence at the time of the gift. Depending on the value there may be lifetime inheritance tax to be paid if the personal allowances are used up. Therefore I would suggest speaking to a tax professional to check what you are looking at doing before taking any action.
@nikkion21402 ай бұрын
Does 7 year rule apply to gifting to a Trust?
@kimberleyshapcottpropertytaxАй бұрын
The 7 year rule does not apply to a trust and there may be immediate tax due on gifts to trusts depending on the tax position of the person.
@AlHR232 ай бұрын
Thanks for the informative video. Would it be possible to leave the property to the children in a trust and continue living there without facing IHT?
@kimberleyshapcottpropertytaxАй бұрын
Depending on the value of the property, there maybe tax charges on the gift to the trust. Therefore it is unlikely to work. I would suggest speaking to a tax professional if you are looking at doing some planning to minimise inheritance tax implications.
@graemehoward-kinsley90832 ай бұрын
If parents gift a jointly owned second property to daughter and only one parent survives the 7 years does any PET return to estate?
@kimberleyshapcottpropertytaxАй бұрын
The 50% from the person who did not meet the 7 year rule would be clawed back. However, the tax charge will depend how many years through the period would determine the tax on the 50% of the gift.
@guymachin72872 ай бұрын
Hi I've just set up a limited company to build a property portfolio,I have a house on a mortgage and want to move it over to the limited company on a BTL. I have a low credit score and have some defaults and it's crushing me with interest rate implications, is there a way I can get around this, I don't know what to do I don't know who to speak to regarding bad debt? Please can you help me? Thanks Guy
@kimberleyshapcottpropertytaxАй бұрын
Depending on the value of the property there would be costs to move it to the limited company which may not be advisable. I would suggest speaking to an Mortgage Broker to see what options you have available on the property.