Fylde Tax Accountants

tel: 01253 398082

Property Articles

Clause 24: Why can’t I just transfer my personally-held properties (with personal mortgages) into a limited company?

First Published: March 2016 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

With the new Mortgage Interest Relief Restrictions (MIRR) starting from tax year 2018 (also known as ‘Clause 24’), many portfolio landlords will be seriously negatively affected, and the above question is the ‘elephant in the room’ – this article explains the risks involved in transferring properties into a company while maintaining underlying personal mortgages on the properties transferred.
Continue Reading »

Operating a property management company effectively

First Published: February 2016 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

Many landlords own their property portfolio personally, and operate a property management company (PMC) alongside. There are a variety of reasons why a PMC may be useful, and there are often (not always) tax advantages to be gained. However, as always, care must be taken to ensure that a PMC is operated properly, so that in the event of a HMRC ‘Enquiry’, there are no issues that can be raised.
Continue Reading »

Post-Clause 24 – what should I do with my properties?

First Published: January 2016 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

Clause 24 is the legislation that has now been given Royal Assent and so will mean restricted mortgage interest relief for landlords from April 2017 to the Basic Rate of income tax (20%), albeit on a sliding scale for 4 tax years to 2020-21. (See previous articles on this topic in YPN, and on our website).

As a result, for those landlords who don’t wish to (or are unable to) fully-incorporate their portfolio – see next month’s article – there is now the unenviable and unforeseen task of having to re-assess whether each rental property held makes sense to be retained personally with a mortgage, given the potentially punitive tax chargeable to do so.
Continue Reading »

Using the Personal Savings Allowance from April 2016

First Published: December 2015 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

A new Personal Savings Allowance (PSA) is being introduced from April 2016, which could have some useful benefits to property investors who also lend money, and for those with a significant credit balance on any director’s loan account they may hold. This article explains how to make use of the PSA, and how to communicate the value to JV investors.
Continue Reading »

Can capital allowances be claimed on a HMO – the definitive answer

First Published: November 2015 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

Many investors are confused about whether capital allowances can be claimed on residential properties, and in particular, HMOs. This article aims to clarify the current position (at October 2015) so that investors have clarity about whether capital allowances are claimable on their HMO property. Continue Reading »

How to use funds in your non-property company to tax-efficiently fund your property investing

First Published: September 2015 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

Most property investors have a ‘day job’ limited company – whether a contractor / consultant company, or a more traditional business – which has excess cash that can’t be extracted without incurring at least an 25% tax charge. This article looks at how such funds can be used for property investing, without incurring a tax charge. Continue Reading »

Mortgage interest relief restricted for landlords – part 1: Are you affected?

First Published: July 2015 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

The July 2015 Budget saw several key changes that will impact landlords in the future – by far the most important is the restriction on mortgage interest relief. This article explains the change, and enables readers to check if the affects them and approximately by how much, and provides some initial pointers as to how to mitigate the impact of this change. Continue Reading »