Successful property investors can easily lose a large chunk of their hard-earned profits by not arranging their affairs tax-efficiently. This article looks at some of the most common property tax mistakes – and how to avoid them. Continue Reading »
Residential property investors suffer a harsh capital gains tax regime and so selling properties that have increased significantly in value often results in a tax bill that is just too hard to take!
As an alternative, investors may instead choose to borrow against their assets –as a sale hasn’t occurred there is no CGT to pay. This article looks at how landlords can access their equity tax-efficiently using a borrowing rather than selling strategy. Continue Reading »
Some property investors and entrepreneurs who operate via a limited company seem to be overly-concerned with how to immediately extract profits from their company. This article looks at how company owners can get maximum benefit from their company profits – whether extracted or retained. Continue Reading »
Most residential property investors shy away from investing in commercial property, despite there being strong tax benefits in doing so. From 1st January 2013, investors can claim up to £250,000 of allowances against their income tax bill – how much would your property plans be accelerated if you didn’t pay any income tax on £250,000 of income in 2013? This article looks at how commercial property can help you to save serious amounts of income tax – as well as being a sound investment. Continue Reading »
Mortgage lenders generally use automated systems to manage the vast numbers of accounts that they manage. While the systems themselves can generally be relied upon – there are some exceptions! The old saying that ‘garbage in, garbage out’ applies, as a human being still needs to set up the account and deal with certain items.
This article explains how to ‘audit’ your own mortgage statements and how to claim a refund from your lender if monies are owed to you. Continue Reading »
Most landlords start their portfolio in their own personal name, perhaps along with a spouse or business partner. In time, as a typical portfolio moves from initial losses to substantial profits – and tax bills! – many landlords look at using a company to mitigate income tax, as companies pay tax at 20% up to £300k of profits. This article looks at whether it makes tax sense to transfer property into a company to save tax.
Using a trust is not something that only ‘the rich’ should be interested in. Trusts have been used for centuries to pass on wealth from one generation to the next, and to enable people to control how their money is used by others both while they are alive and after death.
Although the use of trusts is a complex area – specialist advice should always be sought – this article gives a summary of what trusts are, how they work, and what they are used for.
This is probably the most-frequently question asked by property investors. Property is a business with big numbers – and most investors’ biggest expense is mortgage interest. Having less mortgage debt means less risk, but how many investors can really make a significant dent in their borrowings? And if they can, should they?
This article considers the pro’s and con’s of repaying mortgages, risk and tax considerations, and how to arrive at a conclusion that is right for YOU. Continue Reading »
Actual cash reserves are something of an unknown concept to some property investors. While every investor can relate to that ‘itch’ about wanting to make their cash work for them & so want to buy another property whenever they have spare cash – beware!
Most landlords and small property developers run their property business from home, and not from commercial premises. As a ‘property rental business’ (the HMRC term for a BTL portfolio) is just that – a ‘business’ – some of the costs of running your home can be claimed as a tax deduction to reduce your income tax bill.
This article provides a definitive guide as to what costs can be claimed – and a handy ‘Home Office Calculator’ on our website allows you to produce a fully-supported claim to include in your year-end accounts. Continue Reading »