From 1 April 2023 the current 19% flat-rate of corporation tax for all companies will be replaced by a new regime with variable rates up to 25% of profits. This article looks at how the new regime works, and what tax-planning can be done now to mitigate some of the impact of the changes.
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Most professional landlords think about what life would they be like if they didn’t own a property business, and instead owned truly passive investments, such as stocks and shares.
Many landlords, who are thinking about a ‘traditional’ retirement, are interested in exiting the private rental sector, permanently, but are put off from doing so because of tax concerns
This article looks at how ‘private landlords’ (i.e. those who own their properties personally), could transfer their properties into a company prior to selling their portfolio, and benefit from the ‘re-basing’ of their property purchase prices, potentially saving significant sums in capital gains tax.
Most professional landlords become increasingly interested in what their property portfolio should look like as they approach ‘traditional’ retirement age (say, 60+), in terms of number of properties, income earned, management effort, mortgage debt, etc.
This article looks at what could be argued is a ‘perfect’ mix of all the above factors, balancing profit, tax, mortgage debt, and management effort.
Some property investors build large property portfolios that can become a major management headache, others don’t invest enough to earn a meaningful income, and others build up ‘just enough’ to satisfy their income needs, and maybe even wants, and achieve their property ambitions. This article looks at the pro’s and con’s of building a large vs small property portfolio.
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A typical new property investment company will show positive early cashflow, but may not have a tax bill for several years. How can this be? This article looks at how a new property investment company’s cashflow and tax position changes during its life.
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Individuals landlords and property investors generally pay income tax on their profits, and may also need to make Payments on Account towards the following tax year. This article looks at how the Payments on Account system works, and how these can be changed if required.
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Many property investors operate a property company, and have the option of paying a salary to themselves, or even their family who may help with managing the business.
This article looks at when it is beneficial to pay a salary, and if so, how much, and what is involved from an admin view.
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The profit that a business shows is obviously a visible indictor of its financial success and performance. Not surprisingly, lenders and other third parties will usually look at the profitability of a business, plus there may be tax reasons why it may be desirable for profits to be higher or lower in a particular year.
This article looks at how profit is calculated, and what factors can increase or reduce profits, plus why it may be beneficial for profits to be managed, legitimately.
For the purposes of this article, the business in question is a simple property investment company i.e. a company that owns properties that are rented (although many of the points will apply to other types of company, and ‘sole trader’ landlords).
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The vast majority of landlords use mortgage finance to build their portfolio, and for most there is a dilemma that at some stage needs to be addressed … should I repay my mortgages in full, and even if I can, is it a good move? Every landlord is different in their financial outlook, comfort with borrowings, willingness to take some risk … and so there is no ‘rule’ as such, more just a number of key considerations, to help YOU make the right decision for YOU.
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Many landlords now use a property company to either invest in property directly, or as a management company for their own personally-owned portfolio. Being a Company Director can mean a new world of strange acronyms and new things to learn about … this article looks at what a company ‘SIC’ code is, and also what a company ‘Confirmation Statement’ is – and why these are important aspects of companies that Directors need to have an understanding of.
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