🏚 Property Tax Structure For High Rate Tax Payers 🏚

[@UK-Property-Tax-Accountants]

What tax structure have you deployed for your property investments?

[@greggjones1963]

what about basic rate tax payers hoping to become high rate tax payer through property development/investment?

[@UK-Property-Tax-Accountants]

Hi Gregg Thanks for the message. Our focus is on high rate tax payers but I am sure there are plenty of resources out there for basic rate tax payers too on another channel

[@greggjones1963]

@@UK-Property-Tax-Accountants ok thank you

[@fordfocus01100]

Simon, could you also do a video on structure & building allowances. Thank you.

[@UK-Property-Tax-Accountants]

Sure, will do

[@fordfocus01100]

Hi Simon, can you do a video purely on commercial property tax allowances. Thanks you.

[@UK-Property-Tax-Accountants]

Sounds a cracking idea

[@fordfocus01100]

Can’t wait for that 👍🏻👍🏻👍🏻👍🏻👍🏻Thanks.

[@UK-Property-Tax-Accountants]

You bet

[@andydwan3501]

Thanks for the video this is very informative. If the BTL`s are run through a partnership via trust deeds and a partnership agreement ,is the income received after costs subject to sect 24 rules or treated as the partners income and taxed at their marginal rate? Thank you

[@UK-Property-Tax-Accountants]

Properties in any partnership are treated in the same way as though owned in your name.

[@mvarghai]

Hi Simon. I would like to get an appointment but your link says there is no appointment available. Can you please help?

[@UK-Property-Tax-Accountants]

Please try this link from our website; www.optimiseaccountants.co.uk/ I hope this works for you

[@davidhewitt9692]

Thanks for these videos. To clarify, is one of the possible mitigation’s from being taxed more than you earn, to pay down your mortgage?

[@UK-Property-Tax-Accountants]

Yes indeed, I would certainly say so

[@mrricharde6]

Thanks for the video it was very helpful. I think I already knew most of the content so was good to have it backed up. Another thing worth noting is the higher mortgage interest rates for a limited company pretty much cancel out any tax saving. What about structuring your portfolio in an LLP? Would this allow you to offset all of your finance costs whilst maintaining a mortgage in your personal name?

[@UK-Property-Tax-Accountants]

An LLP is taxed under personal income tax so S24 still applies

[@mrricharde6]

@@UK-Property-Tax-Accountants Understood. But can you offset the whole of your finance cost if operating under an LLP?

[@UK-Property-Tax-Accountants]

Event given that an LLP follows income tax rules the section 24 mortgage interest relief Affects this tax structure. This means that the mortgage interest cost cannot be offset against your rental Inkom using in LLP

[@mrricharde6]

@@UK-Property-Tax-Accountants oh that’s not great then. So the only perk of an LLP is to limited your liability. There is no tax saving between operating in person names or under and LLP.

[@UK-Property-Tax-Accountants]

Correct

[@DIPU1036]

Hello Simon, so the obvious question: What would be the best tax-efficient exit strategy after say 5-10 years of successful investments in BTL's?

[@UK-Property-Tax-Accountants]

Hi Dipak, I think you are right you need a good hour with me to go through your overall strategy

[@imanahmed4887]

Hi Simon. How do I go about extending the payment period of my BBL from 6 to 10 years, and is this available with every bank that offers the BBLs. ? Many thanks

[@UK-Property-Tax-Accountants]

This option is my certainly open to good self. Please do contact your bank which provided you with the loan to get the extension in place

[@MrNessav]

Hi Simon. I have 4 properties between my wife and I on personal names turning over just under £100k so still on lower tax bracket leaving a profit of around £65000. Should I buy my next on personal name or perhaps one of my children, company or anything else. Thanks

[@UK-Property-Tax-Accountants]

That is a great question and an answer you can obtain by booking a tax with us at Optimise Accountants

[@clinthamblett7608]

Hi Simon, I have property in my personal name keeping the income under 50k my wife if finishing work next year is it more tax efficient to buy more BTL's and set up an declaration of trust 100% to her. or would it be best to ignore this option and just buy in the company? We would want access to the money to replace her income.

[@UK-Property-Tax-Accountants]

Deed of trust all the way, with a form 17 for any property that is currently 50/50 owned

[@kogantivijay]

Hi Simon, thanks a lot for the video. It's pretty useful. I am trying to find absolute answer to below usecase but finding it hard. wondering if you can aswer it please Key Facts: April 2014 - Purchased Main Primary Residence August 2017 - Purchased new House and made it Primary Residence( £640,000 with Stamp duty : £41,200.00 including 3% higher SDLT rate) August 2017 - Converted Previous Main Residence to Buy-To-Let In-Progress: Dec 2019 - Sale of Buy-To-Let or Previous Primary Main residence to new Limited Company owned jointly by me & my wife a. Limited Company will be paying the Market rate for property as well as Stamp Duty i.e legally due Q: Will i be eligible to apply for refund of £19,200 on the higher SDLT rate i paid on purchase of existing main residence £640000 with Stamp duty : £41,200.00 as i now disposing my previous main residence with in 3 years. I would not have any doubt about it usually but because we are selling to our own limited company i want to make sure it will have no implication on us getting a refund. Otherwise it would be a loss to us.

[@UK-Property-Tax-Accountants]

Hi Vijay To be honest there is a lot of detail there. It may be financially beneficial for you to book a tax consult to get an answer that is designed with you in mind.

[@kogantivijay]

@@UK-Property-Tax-Accountants I will email you regarding this. Thanks for prompt response.

[@auukkechuyenlamgiau8990]

Thank you very much for sharing your experience knowledge How can I contract to you please? I need help from you ? I need accountant Thanks

[@UK-Property-Tax-Accountants]

You can start right here: www.optimiseaccountants.co.uk/

[@theforexcodes8133]

If I have a limited company that owns properties that are used for Serviced Accommodation am I right in saying it is a trading company not an investment company? Thanks.

[@UK-Property-Tax-Accountants]

SA is seen as a service / trade business but HMRC have already attacked this in the past and will do so again on the basis that no services other than a change of sheets does not constitute as a service in the eyes of HMRC.

[@jesmineguo605]

Why withdraw money from ltd

[@UK-Property-Tax-Accountants]

People might want to take money from them is to be to support their lifestyle