How To Tax Efficiently Structure A Property Flip

Рет қаралды 6,804

Күн бұрын

Пікірлер: 31

@TheTruthisWritteninyourHeart 3 күн бұрын

Another point of clarity on vat is that if you flip a property no vat reclaimable but your gross amount of costs are set off against tax so it’s not a complete loss of vat eg if you had 16k of vat on one job depending on the structure this could 4K less corp tax, if you are supplying properties for vulnerable adults you can also get some zero ratings relief from gross margin scheme contractors, if you are a builder, a flipper, a renter a provider of vulnerable homes to social landlords then there are different reliefs, gross margin schemes stops cross charging and so lifts the vat out of the total works costs. There are literally ways you can save and loose but if your pencils so sharp that the tip keeps breaking your on the wrong side of a deal.

@TheTruthisWritteninyourHeart 3 күн бұрын

Ltd CO’s & LLP’s, SPV’s if all trading or investment done in these vehicles and there are hold, sell, rent, remodel or convert there is only Corporation Tax not income tax its important not to confuse the two.

@joline2730 6 ай бұрын

Extremely interesting discussion. I learned that VAT is not claim-backable ‼️ Not that I've ever earned enough to register for VAT. All I have ever done is Buy, Refurb and Sell on, so I now know where I stand. 👌💯

@JustinWilkins 6 ай бұрын

👏👏

@kevinwooldridge2127 6 ай бұрын

Love these interviews with Peter, so knowledgeable and has enabled me to learn a thing or two.Thanks

@JustinWilkins 6 ай бұрын

Great to hear, thanks Kevin!

@D0MIN0E5 6 ай бұрын

Great video, it would have been interesting to hear from Peter what his thoughts on a group structure would be for holding the different Ltd companies, what the pros and cons might be

@JustinWilkins 6 ай бұрын

Yes great suggestion! I’ve found that for the most part a group structure is usually always a benefit, the main negative is that lending can be trickier / more hoops to jump through

@Air51 6 ай бұрын

Got my 2nd flip going live for sale tomorrow and then was looking for a way to speedup flips and also was looking at buying and holding uplifted properties with more than 5% capital growth. I'd be happy chatting about using my capital to renovate at 50/50 as long as it brings in around £50k net (after tax etc unless we keep the profits in the company) per year. Who do I talk to Justin?

@fivestars9285 5 ай бұрын

With each renovation property bought in a separate company, could one renovate then sell the company including its assets (ie. the property) so the buyer pays shares stamp @ 0.5% and avoids SDLT?

@JustinWilkins 5 ай бұрын

Yes my understanding is that there is currently a market for that, meaning you can sell the company with a property inside it and the buyer avoids SDLT, that could well change in the future.

@thepropertyflipper 3 ай бұрын

Flip in a company and eventually you will need to withdraw the profits - if you have other employment this can be very painfully tax wise as you will get tax on any dividends withdrawn. Better to put the profits into Directors pension (less corp. tax to pay then).

@JustinWilkins 3 ай бұрын

Good tip, thanks!

@sharalsmith 6 ай бұрын

I had so many questions on this. I can't thank you enough for sharing!

@JustinWilkins 6 ай бұрын

Awesome to hear 🙌🏠

@Carl-tv2ew 6 ай бұрын

Thanks for advising only set up SIC as BTL, after 1st property do you have to create spv to split then under the company group Cheers guys great video again

4 ай бұрын

Great discussin. Perhaps you’d make a video on how you were able to manage all the works in Liverpool from 5hrs of drive 😎

@liszaf3976 3 ай бұрын

Really informative thank you 😊

@JustinWilkins 3 ай бұрын

Glad to hear it 🙌

@imranahmed6625 5 ай бұрын

Thanks Justin another informative video. I offered on my first investment property would you recommend any solicitor for buying in limited company Thanks

@claudiasolano1762 Ай бұрын

Really helpful 👌

@JustinWilkins Ай бұрын

Glad to hear it!

@magicaljewels295 6 ай бұрын

Sounds like a complete dogs dinner. No point investing in the UK with those rates and having to justify to the tax man. I’ll sit home and do as most of the UK does - looks more appetising.

@JustinWilkins 6 ай бұрын

😂 as correct as you are about the UK tax system, sitting at home doing nothing is just a waste in my opinion. Why live an average life like that - I’d do anything to make sure I don’t (even if it means paying silly tax rates).

@nickchandra4890 6 ай бұрын

Even for a basic rate tax payer it is better to put the property in a ltd company because interest is tax deductible unlike for an individual. Please check with Peter on this.

@Deathrow2493 6 ай бұрын

We're looking to currently either Flip or rent out and then refinance a property- we're both 20% tax payers and we're also unsure of this. We were thinking the first 1 or 2 BTL properties we'd do in our personal name and then after a business but we're not 100% sure.

@nickchandra4890 6 ай бұрын

@@Deathrow2493 Get some accounting advice. Everything is tax duductible including the interest in a Ltd company. If you make losses those losses can be carried forward to setoff against future profits. If you are planning on doing this as a business do it as a Ltd company. There is another advantage if you decide to sell later on. The new buyer can buy the Ltd company from you and not the property and save stamp duty etc. He is then buying your shares in the company from you not the property itself but obviously it will go to him as the property belongs to the company. It is even better to have one limited company per property as if you want to sell a property you can just sell that Ltd company to the new buyer. This tax accountant should be discussing these issues here. I am a bit surprised.