Private landlords: will you qualify for a full State Pension?

By specialist property accountant Stephen Fay ACA

Rental income is not subject to National Insurance, and as entitlement to the State Pension is only possible if National Insurance is paid, this can mean that landlords can miss out on this potentially valuable income stream

This article looks at how State Pension entitlement is achieved, what the State Pension is worth, and how landlords can check their own National Insurance record and make up for any missing entitlement.
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How to transfer a BTL property to an adult child tax-free…

By specialist property accountant Stephen Fay ACA

Passing on rental property to children tax-efficiently is one of the most commonly-asked queries that we received, especially from older landlords. However, capital gains tax applies to such transfers, and this can make such transfers unviable – however, there is a simple yet effective method to mitigate this issue, via the use of a trust.
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Using a deed of trust to mitigate the impact of Section 24 and save tax

By specialist property accountant Stephen Fay ACA

The forthcoming mortgage interest relief restrictions – starting in tax year 2018 – mean that for many landlords there is a substantial benefit in re-structuring the beneficial ownership of their portfolio, through the judicious use of a ‘deed of trust’ (DOT), in order to make full use of spousal and family Basic Rate tax bands. But what is a deed of trust exactly, why are they beneficial, and how are they properly put into practice?
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Your home IS an asset – Kiyosaki was WRONG!

By specialist property accountant Stephen Fay ACA

In my experience, many property investors neglect their own home as a key part of their property asset base, which can be a serious wealth-building mistake. The ‘Rich Dad Poor Dad’ books – written by Robert Kiyosaki – make the case that your home is a liability rather than an asset – in this article, I make the case is made that the opposite is true (sorry Robert! – although I do still generally agree with your focus on income – or ‘putting cash in your pocket’ views).

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Should I incorporate my BTL portfolio?

By specialist property accountant Stephen Fay ACA

Many property investors are considering the option of incorporating their BTL portfolio to avoid the mortgage interest relief restrictions that are starting from tax year 2018 – as these new tax relief restrictions don’t apply to companies. However, there are a tax and finance challenges, which make the decision not as straightforward as many landlords believe.

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How to buy commercial property using a pension (SIPP) – a real example

By specialist property accountant Stephen Fay ACA

Many property investors are now looking at making pension contributions from their company, to their pension scheme. Pension schemes can’t own residential property, but the ‘next best’ alternative for many people is to own a commercial property.
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General Anti-Abuse Rule (GAAR) – what it is and why it’s important to property investors

By specialist property accountant Stephen Fay ACA

Many property investors are facing an increasingly challenging tax regime, following the Finance Act 2015 – restricting residential mortgage interest relief – which has received Royal Assent. There is now an added incentive for property investors to become more ‘creative’ with their financial affairs – however it is important to stay on the right side of the law. This article explains what the UK’s General Anti-Abuse Rule (GAAR) is, how it affects property investors, and how to ensure compliance with it.
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How to choose and work with a book-keeper

By specialist property accountant Stephen Fay ACA

Many property investors want to leverage not only their money, but also their time, and working with a book-keeper can mean that more precious time is spent on value-adding tasks rather than the more routine tasks. This article sets out how to choose a book-keeper, and how to work with them to get maximum value from their work.
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Clause 24: Why can’t I just transfer my personally-held properties (with personal mortgages) into a limited company?

By specialist property accountant Stephen Fay ACA

With the new Mortgage Interest Relief Restrictions (MIRR) starting from tax year 2018 (also known as ‘Clause 24’), many portfolio landlords will be seriously negatively affected, and the above question is the ‘elephant in the room’ – this article explains the risks involved in transferring properties into a company while maintaining underlying personal mortgages on the properties transferred.
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Operating a property management company effectively

By specialist property accountant Stephen Fay ACA

Many landlords own their property portfolio personally, and operate a property management company (PMC) alongside. There are a variety of reasons why a PMC may be useful, and there are often (not always) tax advantages to be gained. However, as always, care must be taken to ensure that a PMC is operated properly, so that in the event of a HMRC ‘Enquiry’, there are no issues that can be raised.
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