First Published: January 2013 | Available in: Property Articles Your Property Network
Mortgage lenders generally use automated systems to manage the vast numbers of accounts that they manage. While the systems themselves can generally be relied upon – there are some exceptions! The old saying that ‘garbage in, garbage out’ applies, as a human being still needs to set up the account and deal with certain items.
This article explains how to ‘audit’ your own mortgage statements and how to claim a refund from your lender if monies are owed to you. Continue Reading »
First Published: December 2012 | Available in: Property Articles Your Property Network
Most landlords start their portfolio in their own personal name, perhaps along with a spouse or business partner. In time, as a typical portfolio moves from initial losses to substantial profits – and tax bills! – many landlords look at using a company to mitigate income tax, as companies pay tax at 20% up to £300k of profits. This article looks at whether it makes tax sense to transfer property into a company to save tax.
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First Published: November 2012 | Available in: Property Articles Your Property Network
Using a trust is not something that only ‘the rich’ should be interested in. Trusts have been used for centuries to pass on wealth from one generation to the next, and to enable people to control how their money is used by others both while they are alive and after death.
Although the use of trusts is a complex area – specialist advice should always be sought – this article gives a summary of what trusts are, how they work, and what they are used for.
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First Published: October 2012 | Available in: Property Articles Your Property Network
This is probably the most-frequently question asked by property investors. Property is a business with big numbers – and most investors’ biggest expense is mortgage interest. Having less mortgage debt means less risk, but how many investors can really make a significant dent in their borrowings? And if they can, should they?
This article considers the pro’s and con’s of repaying mortgages, risk and tax considerations, and how to arrive at a conclusion that is right for YOU. Continue Reading »
First Published: September 2012 | Available in: Property Articles Your Property Network
Actual cash reserves are something of an unknown concept to some property investors. While every investor can relate to that ‘itch’ about wanting to make their cash work for them & so want to buy another property whenever they have spare cash – beware!
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First Published: March 2012 | Available in: Property Articles Your Property Network
Most landlords and small property developers run their property business from home, and not from commercial premises. As a ‘property rental business’ (the HMRC term for a BTL portfolio) is just that – a ‘business’ – some of the costs of running your home can be claimed as a tax deduction to reduce your income tax bill.
This article provides a definitive guide as to what costs can be claimed – and a handy ‘Home Office Calculator’ on our website allows you to produce a fully-supported claim to include in your year-end accounts. Continue Reading »
First Published: February 2012 | Available in: Property Articles Property Investor News Your Property Network
The Bank of England base rate has now been at 0.5% for around three years, and many property investors are reaching the end of any rental losses they may have built up. This often means that profits are taxed at 40% as rental profits are added to any other income.
So, it’s vital that investors look at options to avoid this exposure – and appreciate that using a company can help to ‘shield’ profits from Higher Rate income tax. Continue Reading »
First Published: January 2012 | Available in: Property Articles Your Property Network
In last month’s article, we covered how operating a company and having that company manage or lease your personallyheld properties, can enable rental profits to be legitimately diverted to the company. This can halve the rate of tax paid on rental profits.
The next question is – how can a Higher Rate taxpayer use the company’s funds without incurring significant additional tax charges? Continue Reading »
First Published: December 2011 | Available in: Property Articles Property Investor News Your Property Network
The standard of rental property these days is much higher than has historically been the case. To stay ahead of the game, many investors are refurbishing their property, often before the first let, to a high standard, and so refurbishment costs are often big money. So, it’s vital that investors appreciate the tax consequences of their refurbishment spending, so that they factor this into their financial plans. This article looks at how refurbishment costs are treated for tax purposes. Continue Reading »
First Published: November 2011 | Available in: Property Articles Property Investor News Your Property Network
Many property investors have heard of ‘Principal Private Residence’ tax relief when selling a property–this is the relief that ensures that no capital gains tax is payable on the sale of a private home (residence). PPR is a key tax relief that investors should look to claim wherever possible, as tax bills on the sale of an investment property can be reduced hugely, or even eliminated altogether, using PPR relief.
This article looks at how PPR relief works, and provides details of recent test cases, and tax-planning tips for investors to consider. Continue Reading »