Tax Treatment Refurbishment

By specialist property accountant Stephen Fay ACA

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 »

Using PPR to Reduce Capital Gains Tax

By specialist property accountant Stephen Fay ACA

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 »

Why Buying More Property Is A Better Strategy Than Repaying Your Mortgages

By specialist property accountant Stephen Fay ACA

Pound Cost Averaging…with Property!

Once interest rates return to normal levels, some investors will find themselves with an unsustainable negative-cashflow portfolio. While it is tempting to start repaying mortgages, another strategy to ensure long-term survival is to buy MORE income-generating property at today’s lower prices.

Buying assets continuously through the peaks and troughs of the market cycle is known as ‘pound cost averaging’ (the phrase is adapted from the US term dollar cost averaging) – this article explains how this strategy can protect a portfolio.  Continue Reading »

Debt Management – An Essential Skill for Investors

By specialist property accountant Stephen Fay ACA

The vast majority of investors use debt to finance their properties and so get a better return on their own cash invested. This means that, for most investors, their most significant property cost is the interest on their borrowings. With portfolio investors often having mortgages and other borrowings with different banks, on different terms and rates, understanding their debt position and interest rate exposure is vital.  Continue Reading »

Top 10 Questions to Ask When Choosing an Accountant

By specialist property accountant Stephen Fay ACA

Serious property investors should have a good accountant on their team, to minimise tax liabilities, produce accounts that help with funding and portfolio growth, and act as a trusted professional adviser. But what should property investors and landlords look for when choosing an accountant?

Clearly, it makes sense to ask the right questions when appointing any ‘supplier’ to your property business. Accountants come in all shapes and sizes, specialise in different areas, may or may not be qualified, be a people-person or a bookworm – this article covers the top 10 questions that landlords should ask to select the right accountant for them.  Continue Reading »

A 5 Minute Guide to Tax-Deductible Expenses for Landlords

By specialist property accountant Stephen Fay ACA

One of the most common questions asked by clients with investment property is ‘what costs can be claimed against income tax on property rental profits?’

Clearly, it makes sense to ensure that every possible expense and allowance is claimed before calculating the income tax to be paid on rental profits – as this has a direct impact on the amount of tax figure payable.  Continue Reading »

Fail to Plan Equals Plan to Fail

By specialist property accountant Stephen Fay ACA

Starting and growing any business requires careful planning – it’s all too easy to focus on the ‘here and now’, and not consider the bigger picture. Successful, sound businesses have clear business objectives, a clear strategy, & regularly assess performance against budget. Continue Reading »

A Simple Guide to Property Cash Flow Management and Filing Systems

By specialist property accountant Stephen Fay ACA

All property investors manage their cashflow – some do it well, for others it’s a daily source of pain! Just like any business, managing cashflow well is essential to the long-term survival of a property portfolio.  Continue Reading »

You Can’t Take it With You – Using Trusts to Avoid CGT

By specialist property accountant Stephen Fay ACA

Some readers may have seen the recent BBC programme called ‘You can’t take it with you’. The programme features a range of scenarios which enabled asset-owners to pass on wealth to loved ones tax-efficiently. For property investors, capital gains tax is often a major issue when passing on assets before death.

Specialist property accountant Stephen Fay ACA considers how property investors can use a trust to mitigate CGT on asset transfers.  Continue Reading »

A Property Investor’s Guide to Surviving an Economic Depression

By specialist property accountant Stephen Fay ACA

Specialist property accountant Stephen Fay ACA considers how property investors can survive if interest rates don’t gradually rise, but rise much more quickly, and even ‘overshoot’ the so-called Bank England ‘neutral rate’ of 5% Continue Reading »