We were very pleased to welcome tax specialist Simon Jackson from Elite Financial Accounting to our April PIM.
Simon is a Chartered Accountant and Director of Elite Financial Accounting Ltd. He specialises in property tax for landlords and developers in the residential property sector.
He has helped hundreds of clients to reorganise their property portfolios in a tax efficient manner, allowing them to grow and prosper in the economic climate.
Simon is also a landlord and has a small HMO portfolio himself, so he is able to advise from the Landlord’s perspective, something that many of his clients appreciate greatly.
Simon has particular expertise in:
1 – Reorganising HMO and rental portfolios for tax efficiency
2 – Accountancy services for developers and investors undergoing large scale commercial to residential conversions
3 – Advising on JV ventures, new build and capital allowance claims
In his presentation, Simon covered key tax issues for Landlords arising from the recent changes and announcements, including:
1 – New SDLT (stamp duty) provisions
- Extra 3% duty for landlords on purchases
- Does not apply to commercial property
- Exemptions for
- Buying own home, if sell previous one within 3 years
- Multiple purchases at the same time
- Houseboats and property under £40k
2 – Removal of Buy to Let Mortgage Interest Relief
- Restrictions on relief from April 2017, to be phased in over 4 years
- Complicated Tax Credit system will replace it
- Basic rate taxpayers will not be affected
- Those pushed into higher rate tax band by the changes will pay more tax
- On average the tax bill for a portfolio of 6-10 properties will go up approx £15k
- Limited companies are not affected
3 – Potential Solutions
- Partnership: make use of spouse’s basic rate allowance
- Split income with Deed of Trust – no CGT on transfer of beneficial profits
- If running a property business, claim relief on transfer to Ltd Co (but will pay SDLT and beware of mortgage requirements)
- Lease to Ltd Co using Rent Guarantee Scheme
- Ensure you claim all allowable expenses – take advice
- Rent a Room allowance has increased to £7.5k
This is a very important topic affecting landlords and Simon’s clear explanation of the issues and complexities was extremely helpful. As ever, this is an area on which it is essential to take your own personally tailored tax advice from a qualified expert.
If you missed this excellent and informative talk, do take advice – and make sure you join us at our next PIM on 26 May 2016 at Holiday Inn, Bristol City Centre, 6-9 pm
For more info and to reserve your place CLICK BELOW!
We look forward to seeing you there.
The team at Property Options