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Property Articles

End Times – exiting BTL tax-efficiently

First Published: April 2022 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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.

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Is this the perfect retirement BTL portfolio?

First Published: February 2022 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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.

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Landlords: How many properties is “enough” for you?

First Published: November 2021 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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Explaining How Income Tax Payments on Account Work for Individual Landlords

First Published: July 2021 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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Should I pay myself and my family a salary from my property company?

First Published: May 2021 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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Managing your Profit Level – Tips & Tricks

First Published: March 2021 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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Mortgages – to pay off, or not to pay off?

First Published: December 2020 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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I’m a Property Company Director – What is a SIC Code and a Confirmation Statement?

First Published: November 2020 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

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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Should I Transfer Individual Properties into a Company?

First Published: September 2020 | Available in: Property Articles Your Property Network

By specialist property accountant Stephen Fay ACA

Many landlords own mortgaged residential property in their personal name, & are affected by ‘section 24’ mortgage interest relief restrictions, & so ideally would like to transfer individual properties into a property company, to avoid Section 24. However the CGT & SDLT cost of doing this is often prohibitive… but not always!
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