The 2022 Autumn Statement (the ‘Budget’ to you and me) saw income tax allowances and thresholds frozen. This will mean more tax will be paid as people are dragged into higher tax bands as their income rises. What can landlords do to mitigate the impact of this?
Most landlords mortgage their properties, as this allows more properties to be bought. As mortgage rates are rising currently, it makes more financial sense to repay mortgages – but not always, and not for everyone!
Everyone has different financial views, and willingness to take financial risk, and so there is no ‘right or wrong’ to this fundamental question – just things to think about, to make the right decision for you
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The economic pointers are signalling a continued rise in the Bank Rate during 2022, perhaps towards the Bank of England’s ‘neutral rate’ of 2.5%, and a recession is also predicted to last until at least 2024.
A key risk facing property investors is the impact of higher interest rates on their business – since finance interest is usually, by far, an investor’s largest expense. Plus, the ability of tenants to pay their rent given the cost of energy currently.
This article considers how property investors can survive these turbulent times…
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Most landlords use mortgages to fund their property purchases, allowing a better return on their own cash invested plus more properties to be purchase with the same cash investment.
In turn, mortgage interest is many landlords’ single biggest cost, and so coping with a rising Bank Rate and tightening mortgage market can be a challenge. It is therefore vital that mortgaged portfolio-landlords understand their borrowings in detail, to enable them to understand their borrowings and overall debt position and exposure to rising interest rates.
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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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