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Capital Gains Tax on Selling Properties
 
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How to invest in property & mitigate CGT liabilities 15th November 2015 By Simon Misiewicz Are you facing a Capital Gains tax liability? Is this going to erode your profits and happiness? The problem Before we go into the detail let me explain the basics. You will have to pay Capital Gains Tax whenever you but, rent out and then sell a property (1). The level of CGT will depend on the amount of money you earn (2). This will frustrate a lot of investors as they would have no doubt already paid tax on the money that earned to buy the property and now they are having to pay tax again in the future. There is a sense of loss as a result of your hard work in making that money too. Can you relate to the above? [Presentation link] If you have answered yes to these questions then this article will be an interesting read. A real life client example For the purpose of this article we are going to name my client John to protect their identify. John bough and sold a property as shown below, he is a high rate tax payer: £200,000 net sales price after fees £100,000 net purchase profit adding on any fees £100,000 profit Individuals will be able to get a CGT allowance per year (2) so the amount of tax to pay is reduced. £100,000 profit on sale £11,000 CGT allowance £89,000 taxable profit John is a high rate tax payer and will therefore pay 28% tax on the taxable profit. John will therefore pay £24,920. How would you feel if you had to pay this amount in tax? Would you prefer not to pay this tax? Next steps: To mitigate the CGT liability altogether you could use a strategy such as hold over relief (3) To qualify for Business Asset Rollover Relief: o you must buy the new assets within 3 years of selling or disposing of the old ones (or up to one year before) o your business must be trading when you sell the old assets and buy the new ones o you must use the old and new assets in your business o You can claim relief on assets including: o land and buildings o fixed plant or machinery, eg a printing press This way you would avoid paying CGT on assets where you sell assets that you have been using the business and buy new assets within three years. More blogs - http://www.optimiseaccountants.co.uk/category/blog/ References: 1 - http://www.optimiseaccountants.co.uk/selling-transferring-properties-and-tax-planning-part-1-of-5/#.VlMakcu6XuI 2 - https://www.gov.uk/capital-gains-tax/work-out-your-capital-gains-tax-rate 3 - https://www.gov.uk/business-asset-rollover-relief
Views: 5086 Optimise Accountants
Using a Limited company structure for property investors
 
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Using a Limited company structure for property investors Are you thinking about using a limited company for your property business? Are you aware of the advantages and disadvantages of using a limited company? Watch the video here: https://youtu.be/BAilPFfKihw The are many benefits of using a limited company such as the reduced tax rate of 19% for 2017-18 compared to the basic rate tax band of 20% for individuals never mind the 40% for high rate tax payers and 45% for additional rate tax payers. Mortgage interest costs may be offset in its entirety against property income but you do need to be mindful that mortgage interest rates are higher. There are many IHT and estate planning benefits too. With the right guidance and support shares may be transferred to loved ones and be free from IHT using Capital Gains Allowances (CGT) each year as we illustrated in the below article: http://www.optimiseaccountants.co.uk/limited-company-the-best-structure-for-tax-and-wealth-planning/#.WaVY2ZOGO34 Many property investors ask how money may be extracted out of a limited company. There are many options such as paying a salary or taking dividends as we explored in the below article http://www.optimiseaccountants.co.uk/extracting-cash-and-paying-yourself-out-of-a-limited-company/#.WaVXk5OGO34 Many property investors forget that the money that they loan to the company may be extracted back out tax free and we show in the below article: http://www.optimiseaccountants.co.uk/getting-money-out-of-a-limited-company-loans/#.WaVZ0ZOGO34 Many property investors may be looking to use a limited company because of the mortgage interest relief cap known as Section 24. We highlighted the key benefits and downsides in the below article and in particular a video within that blog shows details about incorporation relief where you transfer the properties into a company structure free from Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT): http://www.optimiseaccountants.co.uk/transferring-properties-to-your-limited-company/#.WaVZb5OGO34
Views: 1757 Optimise Accountants
Using a Limited company structure for property investors
 
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Using a Limited company structure for property investors Are you thinking about using a limited company for your property business? Are you aware of the advantages and disadvantages of using a limited company? The are many benefits of using a limited company such as the reduced tax rate of 19% for 2017-18 compared to the basic rate tax band of 20% for individuals never mind the 40% for high rate tax payers and 45% for additional rate tax payers. Mortgage interest costs may be offset in its entirety against property income but you do need to be mindful that mortgage interest rates are higher. There are many IHT and estate planning benefits too. With the right guidance and support shares may be transferred to loved ones and be free from IHT using Capital Gains Allowances (CGT) each year as we illustrated in the below article: http://www.optimiseaccountants.co.uk/limited-company-the-best-structure-for-tax-and-wealth-planning/#.WaVY2ZOGO34 Many property investors ask how money may be extracted out of a limited company. There are many options such as paying a salary or taking dividends as we explored in the below article http://www.optimiseaccountants.co.uk/extracting-cash-and-paying-yourself-out-of-a-limited-company/#.WaVXk5OGO34 Many property investors forget that the money that they loan to the company may be extracted back out tax free and we show in the below article: http://www.optimiseaccountants.co.uk/getting-money-out-of-a-limited-company-loans/#.WaVZ0ZOGO34 Many property investors may be looking to use a limited company because of the mortgage interest relief cap known as Section 24. We highlighted the key benefits and downsides in the below article and in particular a video within that blog shows details about incorporation relief where you transfer the properties into a company structure free from Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT): http://www.optimiseaccountants.co.uk/transferring-properties-to-your-limited-company/#.WaVZb5OGO34
Incorporation Relief - Transferring a property portfolio into a limited company
 
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Incorporation Relief - Transferring a property portfolio into a limited company Are you thinking about using a limited company to incorporate your property portfolio? Are you worried that the Section 24 will cost you a lot of money? Watch the video that Louise and Rob recorded all about incorporation relief of your property portfolio: https://www.youtube.com/watch?v=mo6iRBI1gbA Many property investors will be thinking about using a limited company for their property investment portfolio. One of the reasons may be because of the budget tax changes. In particular mortgage interest relief cap whereby high rate tax payers will no longer be able to offset all of their mortgage interest costs against their limited company See article: http://www.optimiseaccountants.co.uk/tax-efficient-tips-for-property-landlords/#.Wa1zItOGO34 See video: https://www.youtube.com/watch?v=Y49hIqm8IwU
Views: 1995 Optimise Accountants
A new way to invest in property is here after 2020. Are you ready?
 
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A new way to invest in property is here after 2020. Are you ready? I have written a blog series that captures my experience of dealing with over 1,000 property investor clients over the past 10 years. My discussions with clients along the way have enriched my knowledge and understanding of what makes a successful property investor. Intro video: https://youtu.be/5HS-urLLWwg Click here to get the latest article that contains inks to the previous parts to the series Article: http://www.optimiseaccountants.co.uk/property-investing-from-2018-part-1-of-9-why-mortgages-are-the-thing-of-the-past/#.WeB7pUyZNAY I am going to cover the following subjects: • Part 1 of 9:  Why mortgages are the thing of the past • Part 2 of 9: The end of buying properties in your own name and why limited companies are the only way forward • Part 3 of 9: Lose it all, the risk of holding residential property investments • Part 4 of 9: You are immortal and do not need to worry about legacy planning, really? • Part 5 of 9: The problem with your Joint Venture partners screwing you over • Part 6 of 9: Why the heck are you doing all this anyway • Part 7 of 9: Why you will be poor at retirement • Part 8 of 9: Why not just buy another poorly-performing asset • Part 9 of 9: The problem of listening to property educators, the so-called gurus I have watched people attend education seminar and read gurus on social media that still talk about buying a property, refurbish the investment and then go back to the bank and get all your money back out within 6 months. Sadly, those days are gone. Property prices have not doubled in value in the past 10 years. In fact, I would argue that some property prices have stayed the same. Banks do not re-finance the value based on the higher valuation levels just because you have done up a property. Even if the mortgage did give you more money for the property. You would be left with a bigger mortgage interest payment each month. With the tax changes, we have seen with Section 24 mortgage interest relief we now know that mortgage interest will be treated as an income. So, by refinancing properties could lead you to a taxation disaster. People are unaware that mortgages and inheritance tax liabilities typically need to be within 12 months of their death. How will mortgages and IHT be paid? People used to say that those investment could easily be sold. Maybe decades ago that would work but now we could be facing recessions in quicker cycles. By the time that your children sell those properties they may be lucky enough to go on holiday with the little money that is left for them. By the time they have finished all the grieving and having the stress of selling your properties they will need it. Take a moment now to think if your parents are leaving you behind their financial chaos. I constantly hear that people need to earn £10k per month. Why is this the case? Maybe they heard someone else say it or they attended a course and everyone said this was the ideal target. What if you do not need all this money to be happy. You may be creating more stress and working harder than you need to as you go past the financial target that you really want. Many people do not truly plan for retirement. Even those that have invested money into pension do not know how well it is performing. You would not take £10 out of the cash machine just to throw it down the drain, would you? I would argue that many people are doing this with their investments for retirement. People are now quickly converting their pensions to invest into property. Lets remember that pension income and capital gains are tax free. Not only that but pensions sit outside of your IHT. By getting money from your pension and investing into property may cause an inheritance tax liability that you was not expecting. I have seen so many clients that have been taken for a ride by some clever marketing. Marketing materials that sell dreams with their clever use of words and figures. The reality is that many of our clients have lost £100,000+ each because the property fell through, the refurbishment costs overran or the revaluation did not come back as expected. What do your joint venture partners have to lose when things go wrong, especially when they have not put any money into the deal? If you want to know the new way to invest in property then you are advised to read these articles and take note.
Want to pay less SDLT on your next property purchase?
 
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Want to pay less #SDLT on your next #property #investment? Are you aware that there are several ways of reducing your SDLT liability? Video: https://youtu.be/um6fg6kVu_w The #3% SDLT surcharge came into effect on from November 2015 for anyone that is buying a property £40,000 or more. Article: http://www.optimiseaccountants.co.uk/additional-3-stamp-duty-for-second-property-purchases/#.We39tEyZNAY There are ways to reduce SDLT and save on the SDLT surcharge, as we have identified in our articles: 1 – This is a relief whereby you can take the total value of the property portfolio using the averaging method Article: http://www.optimiseaccountants.co.uk/reducing-the-impact-of-stamp-duty-land-tax-sdlt/#.We39rUyZNAY 2 – #Build a house instead of buy: when you buy a plot of land you pay SDLT on the value of the land only and no SDLT is payable on the completed home. Article: http://www.optimiseaccountants.co.uk/beat-the-stamp-duty-surcharge-by-building-instead-of-buying/#.We394EyZNAY 3 – If you find a property investor that purchased properties in a #limited #company it may be better for you to buy the company rather than individual properties from the company. Buying shares in a company attracts a different level of tax with Stamp Duty (SD) at 0.5% Article: http://www.optimiseaccountants.co.uk/buying-a-portfolio-buy-the-company/#.We3940yZNAY 4 – Commercial properties or buying #flats above a #shop. If you were to buy these types of properties you would pay the non-residential rates of SDLT and would not need to pay the 3% SDLT surcharge Article: http://www.optimiseaccountants.co.uk/beat-budget-changes/#.We4B9UyZNAY 5 - Property #developers will not pay SDLT on a purchase that has fallen through or on part exchange with a vendor: Article: http://www.optimiseaccountants.co.uk/property-developers-do-not-have-to-pay-sdlt-on-property-flips/#.WfsXQ0ycbBJ
Views: 1366 Optimise Accountants
Property incorporation - common mistakes made by property investors
 
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Property #incorporation - common mistakes made by property investors Are you thinking about using a #limited #company to incorporate your property portfolio? Are you worried that the #Section24 will cost you a lot of money? Watch the video that Louise and Rob recorded all about #incorporation #relief of your #property portfolio and in particular the common mistakes they are now finding people are making. Video: https://youtu.be/iVprd5GCRzg Many property investors will be thinking about using a limited company for their property investment portfolio. One of the reasons may be because of the budget tax changes. In particular mortgage interest relief cap whereby high rate tax payers will no longer be able to offset all of their #mortgage #interest costs against their limited company See article: http://www.optimiseaccountants.co.uk/tax-efficient-tips-for-property-landlords/#.Wa1zItOGO34 See video: https://www.youtube.com/watch?v=Y49hIqm8IwU We decided to write an article about how to transfer properties into a limited company without paying Capital Gains Tax (#CGT) or Stamp Duty Land Tax (#SDLT) if you used a partnership structure Article: http://www.optimiseaccountants.co.uk/mitigate-cgt-and-claim-incorporation-relief-on-your-property-business/#.Wa1zEdOGO34 However, we have noticed that there is a growing trend towards this strategy. Sadly, there are people that will not benefit from this strategy. Indeed, the cost of incorporation may be more than the tax they save, especially if they rely on mortgages. We therefore decided to write an article to show people the downsides to incorporation Article: http://www.optimiseaccountants.co.uk/the-truth-about-stamp-duty-and-partnershipsllps/#.Wa1zJtOGO34 I hope it helps
Welcome to Optimise Accountants - Simon Misiewicz
 
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Welcome to Optimise "Property Tax Specialists" Accountants. We are here to help you make more money and pay less tax on your property portfolio. We support our clients through: - Tax planning reviews to ensure that you have claimed all the allowable costs to mitigate profits and tax on your property portfolio. - Booking calls to speak with us, so that you gain confidence in your property strategy. - Watch our webinars and go back through the back catalogue to help you increase your awareness and knowledge of the latest financial improvement strategies and tax legislation changes. - Attend our "Property Finance & Tax Mastery" workshops for you to get a firmer understanding of how you can make more money and pay less tax on your property portfolio.
Section 24 - Mortgage interest relief cap - How does it affect you?
 
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Section 24 - Mortgage interest relief cap - How does it affect you? Are you going to be paying more tax in 2020 than ever before? Are you like some of our clients that will pay 135% tax on your portfolio? Yes I did say 135%. That is before we helped them make some fundamental changes to their tax structure. Video: https://youtu.be/ZM0mNyD102o You should be aware by now that mortgage interest costs will not be allowed to be offset against your residential property income. We wrote an article that illustrated how the budget changes will affect most landlords in the UK that have mortgages Article: http://www.optimiseaccountants.co.uk/july-2015-latest-budget-announcement-run-for-the-hills/#.Wa51RdOGORs There are a number of solutions that many people have identified. One of the suggestions is to incorporate your property business into a limited company. There are ways of incorporating your properties but you need to consider three things 1) the cost of refinancing your properties in the limited company 2) the Capital Gains Tax (CGT) of selling properties and 3) Stamp Duty Land Tax (SDLT) as you will be transferring properties into a limited company and therefore SDLT applies. We wrote an article to illustrate how you can incorporate your property business into a limited company without paying CGT or SDLT using a partnership structure Article: http://www.optimiseaccountants.co.uk/mitigate-cgt-and-claim-incorporation-relief-on-your-property-business/#.Wa51n9N96Rs However, before you jump off into the world of incorporation you need to ensure that the finance costs (re-mortgage) does not outweigh the tax benefits. We wrote another article that highlighted why many property investors should not look to incorporate their property business Article: http://www.optimiseaccountants.co.uk/incorporating-a-property-business/#.Wa51s9N96Rs You may wonder what next for property investors. Please remember that you only pay the additional tax if a) you have a mortgage and b) you are a high rate tax payer If you decide to invest in commercial properties then you will not need to worry about the budget changes. In particular the mortgage interest relief cap as it does not affect commercial properties. Article: http://www.optimiseaccountants.co.uk/commercial-and-residential-property-investment/#.Wa51rNN96Rs
Why high rate tax payers should not invest in residential properties
 
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Why high rate tax payers should not invest in residential properties 12th November 2015 By Simon Misiewicz Are you a high rate tax payer? Do you ignore the fact that you have paid tax when you invest in residential properties? The problem Many high rate tax payers work very hard for their hard earned income and are taxed at 40% / 45%. There are many people that take their remaining cash, after a large chunk of tax has been removed, and invest in residential properties. The issue as I see it may be better explained in the below example: John buys a property and aims to make money by renting it out. He buys a property below market value and feels that he can generate about 15% Return on Investment (ROI). Here is the break down of his numbers: £100,000 house (off plan – no refurb required) £25,000 deposit (25% of the purchase price) £30,000 refurbishment costs £55,000 cash invested in the project He makes £750 rental profit per month, which equates to £9,000. To obtain the ROI we divide the £9,000 by the £55,000 amount of money invested times by 100. £9,000 / £55,000 X 100 = 16.3% As you can imagine that John is very happy with the generated numbers. John is a high rate tax payer. In order to get the £55,000 our he would have been employed and paid tax on this money. Lets take for grated that the £55,000 was taxed at 40%. This means that John would need to earn £91,667, which is the actual cash invested. The property profits will also be tax at 40%. Thus: £9,000 profit made in the year £3,600 tax £5,400 Net profit after tax The real ROI is therefore : £5,400 / £91,667 X 100 = 6% ROI Would you now invest in this property now that you have this additional information to hand? Neither would I. Can you relate to the above with your property projects? If you have answered yes to these questions then this article will be an interesting read. The Solution The solution is to prevent paying tax at the from end, on your employment income. This may be done by investing money into a pension. There is a vehicle that allows you to purchase commercial and residential properties using pension money, indirectly. You would be right to assume that pension money can only invest into commercial properties. You would be right but there are indirect vehicles that may be used to draw money from your pension to invest in both commercial and residential properties
VAT considerations for Property investors and developers
 
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Value Added Tax (VAT) considerations for property investors Did you know that the standard cost of 20% may be reduced if not removed altogether on your refurbishment costs? Did you know that some commercial properties require you to pay 20% VAT on top of the property price? It is an unknown fact for many property investors that VAT can indeed be reduced or mitigated in full. video: https://www.youtube.com/watch?v=noV0kYJSzmk&t=21s We have written an article that talks about the basics of VAT for property investors to demonstrate if VAT needs to be charged by you or if you are able to reclaim VAT back. Article: http://www.optimiseaccountants.co.uk/vat-basics-for-property-investors/#.Waj97NOGORs We have also written an article about Houses of Multiple Occupancy (HMOs), where if you meet certain criteria you can reduce the VAT rate on elements of your refurbishment costs from 20% to 5% Article: http://www.optimiseaccountants.co.uk/cut-vat-from-20-to-5-on-conversions-self-contained-hmos-bedsits/#.Waj98NOGORs You can also have a reduced rate on refurbishment costs from 20% to 5% if you buy properties that have been empty for more than two years. Not only is the house price reduced because it may be in a bad state but you will also benefit from the reduced refurbishment costs. Article: http://www.optimiseaccountants.co.uk/pay-just-5-vat-on-refurb-work-on-properties-that-have-been-empty-for-two-years-or-more/#.WakAu9N96Rs For many investors they are not aware that VAT needs to be paid on certain commercial properties. This can come as a shock to many as it is not always obvious. By the time you find out it is too late and you have to buy the more expensive property or lose your deposit. In this article we discuss how this element of VAT may be removed altogether: http://www.optimiseaccountants.co.uk/1614d-form-to-remove-vat-from-commercial-building-purchases/#.Waj-WtN96Rs You may be aware that new property developments are zero rated for VAT purposes. However, some property investors are not aware that the VAT on development costs can be claimed back. Be warned it can be a long administration process. Article: http://www.optimiseaccountants.co.uk/claiming-back-100-vat-on-your-property-development/#.Waj-XNN96Rs
Reducing VAT on commercial to residential property conversions
 
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Did you know that the standard cost of 20% may be reduced if not removed altogether on your refurbishment costs? Did you know that some commercial properties require you to pay 20% VAT on top of the property price? It is an unknown fact for many property investors that VAT can indeed be reduced or mitigated in full. video: https://www.youtube.com/watch?v=noV0kYJSzmk&t=21s We have written an article that talks about the basics of VAT for property investors to demonstrate if VAT needs to be charged by you or if you are able to reclaim VAT back. Article: http://www.optimiseaccountants.co.uk/vat-basics-for-property-investors/#.Waj97NOGORs We have also written an article about Houses of Multiple Occupancy (HMOs), where if you meet certain criteria you can reduce the VAT rate on elements of your refurbishment costs from 20% to 5% Article: http://www.optimiseaccountants.co.uk/cut-vat-from-20-to-5-on-conversions-self-contained-hmos-bedsits/#.Waj98NOGORs You can also have a reduced rate on refurbishment costs from 20% to 5% if you buy properties that have been empty for more than two years. Not only is the house price reduced because it may be in a bad state but you will also benefit from the reduced refurbishment costs. Article: http://www.optimiseaccountants.co.uk/pay-just-5-vat-on-refurb-work-on-properties-that-have-been-empty-for-two-years-or-more/#.WakAu9N96Rs For many investors they are not aware that VAT needs to be paid on certain commercial properties. This can come as a shock to many as it is not always obvious. By the time you find out it is too late and you have to buy the more expensive property or lose your deposit. In this article we discuss how this element of VAT may be removed altogether: http://www.optimiseaccountants.co.uk/1614d-form-to-remove-vat-from-commercial-building-purchases/#.Waj-WtN96Rs You may be aware that new property developments are zero rated for VAT purposes. However, some property investors are not aware that the VAT on development costs can be claimed back. Be warned it can be a long administration process. Article: http://www.optimiseaccountants.co.uk/claiming-back-100-vat-on-your-property-development/#.Waj-XNN96Rs
Deed Of Trust to minimise property income tax and Capital Gains Tax (CGT)
 
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A deed of trust is a legal document that allows you to transfer the beneficial interest of a property within a married couple. If a property is owned 50/50 but one person is a high rate tax payer and the other is a basic rate tax payer then there are tax inefficiencies. By reallocating the property beneficial interest 99% to the basic rate tax payer and 1% to the high rate tax payer you will be able to save a lot of income tax. This is especially the case given the budget changes of Section 24 and the inability to offset 100% of the mortgage interest cost again your property income. See article: http://www.optimiseaccountants.co.uk/deed-of-trust-houses-owned-between-spouses/#.Wl9l3SOcZAY A deed of trust is also a very useful tool whereby you are looking to sell a property and you have Capital Gains Tax (CGT) to pay. If only one person owns the property then they will only benefit from one lot of Capital Gains Tax allowance. If, by using a deed of trust, the property is owned in both names then two lots of Capita Gains Tax allowance exists. Not only that but you will be able to allocate the bigger proportion to the basic rate tax payer that will suffer 18% CGT compared to 28% for a high rate tax payer. See article for more details: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.Wl9lkyOcZAY Sadly, we have a number of clients that are being investigated by HMRC as solicitors have charged the client for a deed of trust (legal document) but had not completed a form 17 (HMRC declaration of income). This document needs to be lodged with HMRC with a copy of the deed of trust within 60 days else the document and reallocation of income becomes void. Can you hold the solicitor accountable? Sadly not. After all as solicitors will tell you that it is your responsibility to manage your tax affairs. Is this fair? Equally I would say not as they should have an ethical approach to tell you the full facts. Thats life and clients pay the price. We now carry out the service of deed of trusts for £300 for each property to ensure that these mistakes are not made again for our clients. Have you got a problem that HMRC can unravel and charge you 6 years worth of unclaimed tax? It is worth checking your documents now. Full article: http://www.optimiseaccountants.co.uk/deeds-of-trust-dont-trust-your-solicitor-to-get-it-right/
Section 24 - FREE Tax Calculator Spreadsheet - How does mortgage interest relief cap affect you?
 
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FREE Tax #Calculator #Spreadsheet - How does #Section24 mortgage interest relief cap affect you? Demo video: https://youtu.be/TT4rta62U3Y Download spreadsheet: http://www.optimiseaccountants.co.uk/mortgage-interest-relief-cap-section-24-free-calculator/#.Wbuy6NN96Rs See how the #mortgage #interest relief (section 24) really affects you. This spreadsheet will not only show you how the budget changes will affect your property investments, more to the point your tax liability, it will also show you some of the solutions that we have successfully used for our clients. You should be aware by now that mortgage interest costs will not be allowed to be offset against your residential property income. We wrote an article that illustrated how the budget changes will affect most landlords in the UK that have mortgages Article: http://www.optimiseaccountants.co.uk/july-2015-latest-budget-announcement-run-for-the-hills/#.Wa51RdOGORs There are ways of incorporating your properties but you need to consider three things 1) the cost of refinancing your properties in the limited company 2) the Capital Gains Tax (#CGT) of selling properties and 3) Stamp Duty Land Tax (#SDLT) as you will be transferring properties into a limited company and therefore SDLT applies. We wrote an article to illustrate how you can incorporate your property business into a limited company without paying CGT or SDLT using a partnership structure Article: http://www.optimiseaccountants.co.uk/mitigate-cgt-and-claim-incorporation-relief-on-your-property-business/#.Wa51n9N96Rs However, before you jump off into the world of incorporation you need to ensure that the finance costs (#re-mortgage) does not outweigh the tax benefits. We wrote another article that highlighted why many property investors should not look to incorporate their property business Article: http://www.optimiseaccountants.co.uk/incorporating-a-property-business/#.Wa51s9N96Rs You may wonder what next for property investors. Please remember that you only pay the additional tax if a) you have a mortgage and b) you are a high rate tax payer If you decide to invest in #commercial #properties then you will not need to worry about the budget changes. Article: http://www.optimiseaccountants.co.uk/commercial-and-residential-property-investment/#.Wa51rNN96Rs
Capital Gains Tax (CGT) from 2018/19 and how to mitigate it
 
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Capital Gains Tax (CGT) from 2017/18 and how to mitigate it Are you looking to sell any of your poor performing assets due to the mortgage interest relief cap issue? Are you looking at ways to minimise CGT? See Louise and Rob discuss Capital Gains Tax (CGT): https://youtu.be/2X91j6TSWbU CGT is a tax cost that reduces the amount of net cash that you will eventually receive upon selling your property. CGT is based on the sales price, less purchase price (and associated purchase costs) less any capital cost of refurbishment. As we highlighted in the previous article that George Osborne in 2015 reduced the CGT rates from 18% to 10% for basic rate tax payers and from 28% to 20% for high rate & additional rate tax payers. Sadly for people disposing of property investments they are still expected to pay the old rates of 18% and 28% This is a good start to see how CGT will affect property investors from 2017/18 Article: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-from-201718/#.WdeV-kyZNAY This is another good article that shows many ways of how CGT may be mitigated See article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WagUh5OGO34 We wrote another article that demonstrated ways of how you may be able to mitigate some of the CGT Article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WagT9ZOGO34 One of the ways that you can reduce CGT is to move back into a property and claim private residence relief Article: http://www.optimiseaccountants.co.uk/minimise-your-cgt-liability-on-a-house-move-back-in/#.WagT95OGO34 One of the great ways to mitigate both CGT and inheritance tax (IHT) is to transfer the property into trust and move it back out again See article: http://www.optimiseaccountants.co.uk/gifting-buy-to-lets-properties-to-children-without-capital-gains-tax-cgt-using-trusts/#.WagT-5OGO34 If you were happy to re-invest the gains from the disposal and re-invest it into an Enterprise Investment Schemes (EIS) then you can defer the CGT and obtain an income tax reducer of 30% See article: http://www.optimiseaccountants.co.uk/mitigate-capital-gains-tax-with-eis-investments/#.WagVaZN9634
Views: 3706 Optimise Accountants
Capital Gains Tax (CGT) common mistakes made by property investors
 
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Capital Gains Tax (#CGT) common mistakes made by #property #investors Video: https://youtu.be/CxwcObvgyvE Capital Gains Tax (CGT) is a tax that is incurred when you dispose of a property. Interestingly enough we talk about putting a #flip #property into a limited company so that you can claim entrepreneurs relief rather than paying income tax or capital gains tax in your own name. Article: http://www.optimiseaccountants.co.uk/flipping-properties-in-a-limited-company-claiming-entrepreneurs-relief/#.WfhDnUycbBI There are many ways that you can reduce CGT through: deeds of trusts, investments into #EIS/#SEIS/#VCTs, rollover relief for trade premises etc. Article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WfhC90ycbBI One of the ways that you can reduce CGT is to move back into a property and claim private residence relief #PRR Article: http://www.optimiseaccountants.co.uk/minimise-your-cgt-liability-on-a-house-move-back-in/#.WagT95OGO34 There are ways to incorporate your property business without the need to pay #CGT/#SDLT through the use of a simple partnership. We work with HMRC to gain clearance so that there is no comeback later. Article: http://www.optimiseaccountants.co.uk/incorporating-a-property-business/#.WfhC00ycbBI Non-resident and CGT: A change in legislation in April 2016 meant that people outside the UK (non-residents) will still pay CGT is they disposed of a property. Article: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-leaving-the-uk-and-non-residents/#.WfhCEEycbBI We have created a spreadsheet that allows you to work out how much CGT you will need to pay. Downloadv here: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-calculator-for-2017-18/#.WfhGr0ycbBI
Capital Gains Tax (CGT) and reliefs for property investors and landlords
 
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Capital Gains Tax (CGT) from 2017/18 and how to mitigate it Are you looking to sell any of your poor performing assets due to the mortgage interest relief cap issue? Are you looking at ways to minimise CGT? See Louise and Rob discuss Capital Gains Tax (CGT): https://youtu.be/2X91j6TSWbU CGT is a tax cost that reduces the amount of net cash that you will eventually receive upon selling your property. CGT is based on the sales price, less purchase price (and associated purchase costs) less any capital cost of refurbishment. As we highlighted in the previous article that George Osborne in 2015 reduced the CGT rates from 18% to 10% for basic rate tax payers and from 28% to 20% for high rate & additional rate tax payers. Sadly for people disposing of property investments they are still expected to pay the old rates of 18% and 28% This is a good start to see how CGT will affect property investors from 2017/18 Article: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-from-201718/#.WdeV-kyZNAY This is another good article that shows many ways of how CGT may be mitigated See article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WagUh5OGO34 We wrote another article that demonstrated ways of how you may be able to mitigate some of the CGT Article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WagT9ZOGO34 One of the ways that you can reduce CGT is to move back into a property and claim private residence relief Article: http://www.optimiseaccountants.co.uk/minimise-your-cgt-liability-on-a-house-move-back-in/#.WagT95OGO34 One of the great ways to mitigate both CGT and inheritance tax (IHT) is to transfer the property into trust and move it back out again See article: http://www.optimiseaccountants.co.uk/gifting-buy-to-lets-properties-to-children-without-capital-gains-tax-cgt-using-trusts/#.WagT-5OGO34 If you were happy to re-invest the gains from the disposal and re-invest it into an Enterprise Investment Schemes (EIS) then you can defer the CGT and obtain an income tax reducer of 30% See article: http://www.optimiseaccountants.co.uk/mitigate-capital-gains-tax-with-eis-investments/#.WagVaZN9634
Views: 4618 Optimise Accountants
Incorporation relief for property investors
 
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Incorporation Relief - Transferring a property portfolio into a limited company Are you thinking about using a limited company to incorporate your property portfolio? Are you worried that the Section 24 will cost you a lot of money? Watch the video that Louise and Rob recorded all about incorporation relief of your property portfolio: https://www.youtube.com/watch?v=mo6iRBI1gbA Many property investors will be thinking about using a limited company for their property investment portfolio. One of the reasons may be because of the budget tax changes. In particular mortgage interest relief cap whereby high rate tax payers will no longer be able to offset all of their mortgage interest costs against their limited company See article: http://www.optimiseaccountants.co.uk/tax-efficient-tips-for-property-landlords/#.Wa1zItOGO34 See video: https://youtu.be/mfBZy3gVzCQ
A new way to invest in property after 2020. Are you ready?
 
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A new way to #invest in #property after 2020. Are you ready? Intro video: https://youtu.be/6teObI-4ZRc I have written a blog series that captures my experience of dealing with over 1,000 property investor clients over the past 10 years. Latest blog: Part 6 of 9: What the heck are we doing all this for. Some thought provoking questions to get you started on the start of the week http://www.optimiseaccountants.co.uk/simon-says-part-6-of-9-why-the-heck-are-you-doing-all-this-anyway/#.Wg2vsLacbBJ My discussions with clients along the way have enriched my knowledge and understanding of what makes a successful property investor. I am going to cover the following subjects: • Part 1 of 9: Why #mortgages are the thing of the past Article: http://www.optimiseaccountants.co.uk/property-investing-from-2018-part-1-of-9-why-mortgages-are-the-thing-of-the-past/#.Wfc1DEycbBJ • Part 2 of 9: The end of buying properties in your own name and why #limited #companies are the only way forward Article: http://www.optimiseaccountants.co.uk/simon-says-part-2-of-9-the-end-of-buying-properties-in-your-own-name-and-why-limited-companies-are-the-only-way-forward/#.Wfc1DkycbBI • Part 3 of 9: Lose it all, the risk of holding residential property investments Article: http://www.optimiseaccountants.co.uk/simon-says-part-3-of-9-lose-it-all-the-risk-of-holding-residential-property-investments/#.Wfc1EUycbBI • Part 4 of 9: You are immortal and do not need to worry about legacy planning or #IHT, really? Article: http://www.optimiseaccountants.co.uk/simon-says-part-4-of-9-you-are-immortal-and-do-not-need-to-worry-about-legacy-planning-really/#.WfczAUycbBI • Part 5 of 9: The problem with your Joint Venture partners screwing you over Article: http://www.optimiseaccountants.co.uk/simon-says-part-5-of-9-the-problem-with-your-joint-venture-partners-screwing-you-over/#.WgB-b7acbBI • Part 6 of 9: Why the heck are you doing all this anyway Article: http://www.optimiseaccountants.co.uk/simon-says-part-6-of-9-why-the-heck-are-you-doing-all-this-anyway/#.Wg2vsLacbBJ • Part 7 of 9: Why you will be poor at retirement without #pensions • Part 8 of 9: Why not just buy another poorly-performing asset • Part 9 of 9: Why #commercial #properties are the new black
Webinar - Using a limited company - For property investors
 
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In this webinar we discussed the benefits of having a limited company - What the tax rates are for limited companies - How to extract money tax efficiently from a limited company - Tax free / NI free wages - Tax free dividends - Reduce IHT using freezer shares / ABC shares - Pay for private education - Pay for private medical treatments We also discussed the "Watch out" considerations of using a limited company - Annual Tax Envelope Dwellings (ATED) - Registration for payroll if salary is above £5,876 - Pension auto enrolment requirements - Tax issues if extracting all the profits out of the limited company
FREE Pension calculator spreadsheet: Pension Contributions Tax Relief Calculator
 
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FREE Pension calculator spreadsheet: How much pension contributions can you make and what are the tax reliefs available? Video demo: https://youtu.be/wPkynCpxWMM Spreadsheet download: http://www.optimiseaccountants.co.uk/free-pension-calculator-spreadsheet-how-much-pension-contributions-can-you-make-and-what-are-the-tax-reliefs-available/#.WdJPq0yZNAY We have created a spreadsheet that shows you how much money you can contribute towards your pension based on your earnings. The more money you earn the more you can contribute. There are caveats to this and you can find out more by reading the various articles below. It is worth noting that the maximum amount of money they can invest into a pension is £40,000. This amount is reduced if you a) do not earn that level of income b) you have taken money out of your defined contribution pension scheme or c) your earnings are from property. If you earn all your money from property the limit is significantly reduced to £3,600 and finally d) if you earn in excess of £110,000 then pension contributions may also be reduced. If you have not contributed towards your pension before then you need to be aware that you can go back several tax years to use up previous years allowances. This article shows you why certain people earning over a certain limit will be limited to the amount of pension contributions they can make. The limit can be reduced from £40,000 right down to £10,000. Article: http://www.optimiseaccountants.co.uk/advice-on-pension-contributions/#.WdJHUUyZNAZ You also need to be aware that there are different types of pensions you can invest into. There are managed funds through companies like St James’s Place or SIPP/SSAS pension funds that provides greater degree of control for you to decide how the money is invested Article for SIPPS: http://www.optimiseaccountants.co.uk/how-to-set-up-a-sipp-pension/#.WdJIDkyZNAZ A lot has been said about how you can use SSAS pensions to invest into residential property investments. Albeit there is a degree of truth into this there are many obstacles that need to be jumped over to ensure that you adhere to the red tap regulations. Article: http://www.optimiseaccountants.co.uk/using-ssas-pensions-and-buying-residential-investments/#.WdJJlkyZNAZ In the below article we show how both employers and employees both benefit from the pension contributions because of the various tax reliefs. If you are in a salary sacrifice employed position there is nothing more you need to do in regard to your pension contributions. If you are not in a salary sacrifice or you make additional voluntary contributions then you may need to claim the tax reliefs through your self assessments as high rate or additional rate tax payers. This article also shows the amount of pension contributions you can make based o your earnings. Article: http://www.optimiseaccountants.co.uk/pension-contributions-and-tax-relief-for-employers-and-employees/#.WdJIfUyZNAY One of the most powerful benefits of pension contributions is that the investment sits out of your estate. This means that the pension value is not taken into account when valuing your asset value for inheritance tax (IHT) purposes: http://www.optimiseaccountants.co.uk/inheritance-tax-toolkit-for-buy-to-let-landlords-part-six/#.WdJK8kyZNAY You also need to be aware that your work placed pension scheme is at risk should you die. Most people are not aware that your pension is only passed to your spouse at 50% of the investment value. Worst still when you both pass away your work based pension investment scheme also dies with you. This means that the pension contributions you have made cannot be passed onto your children upon your death unless you have taken wealth and tax planning advice. Article: http://www.optimiseaccountants.co.uk/wealth-management-tax-planning-for-property-investors/#.WdJL8EyZNAY
Property pension investments YouTube Preview
 
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Are you looking to invest in more property? Did you know that you can invest in property whilst reducing your tax liability? In this YouTube preview video I will give you a glimpse of the benefits of using a SSAS pension to invest in commercial properties. If you wanted to watch the entire video then please go to The Vault with the below URL: http://www.optimiseaccountants.co.uk/vault/
Limited Companies for Property investors and landlords
 
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Louise and Rob discuss Limited Companies for Property Owners There are many reasons why you should use a limited company as a landlord / property investor. Section 24 has meant that it is no longer worth while to buy and hold property investments in your personal name. As such a limited company is a good vehicle to keep buy to let properties in a tax-efficient vehicle. You can extract cash out of a limited company with ease siuch as a) Tax free wages b) Tax free dividends c) Key person insurance d) childcare vouchers e) pay for medical bills f) your company to provide high street vouchers
Buying your next property investment: Due diligence spreadsheet - FREE Downloadable spreadsheet
 
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Buying your next #property #investment: #Due #diligence #spreadsheet - FREE Downloadable spreadsheet How do you know that the property your are buying will provide the desired Return On Investment (ROI)? Demo video: https://www.youtube.com/watch?v=jI2QwlcZdTE&t=3s Download spreadsheet: http://www.optimiseaccountants.co.uk/due-diligence-free-downloadable-spreadsheet/#.Wb-MRNN96Rs It is important that you understand the number of the residential property investment to ensure that the numbers stack up for you to make money. There are may aspects that the spreadsheet will go through to assist you in the buying decision making process: - The purchase costs and associated fees - How much Stamp Duty Land Tax (#SDLT) will need to be paid including the 3% surcharge - Refurbishment costs analysis, where to buy materials and where to identify reliable trades people - Total amount you will need to invest (deposit + refurbishment costs + purchase costs) - How much profit you will make (rental income less rental expenditure) Once you have identified the above numbers you will then be in a position to see how much money you will make on a monthly basis. This will then help you to work out the Return On Investment (#ROI) What about tax? This spreadsheet also asks you to enter in your other streams of other income such as employment income, dividends and self employment. The spreadsheet will also tell you how much tax that you will pay on the property based on the budget tax changes, in particular #Section24 mortgage interest relief. How significant are voids to your property financial performance? We have also written some articles that might help you make more money and pay less tax on your investment Managing voids to maximise your income: http://www.optimiseaccountants.co.uk/how-significant-are-voids-to-your-property-financial-performance/#.Wb-NfNN96Rt Managing maintenance costs to maximise ROI: http://www.optimiseaccountants.co.uk/managing-maintenance-costs-to-maximise-roi/#.Wb-OJdN96Rt Book Keeping And Accounts For Property Investors: http://www.optimiseaccountants.co.uk/book-keeping-and-accounts-for-property-investors/#.Wb-NiNN96Rt 10 Properties, £2,000 Net Cash Flow Or 15% ROI – What Is More Important?: http://www.optimiseaccountants.co.uk/10-properties-2000-net-cash-flow-or-15-roi-what-is-more-important/#.Wb-NjNN96Rt #Allowable #Costs For Property Investors: http://www.optimiseaccountants.co.uk/allowable-costs-for-property-investors/#.Wb-Nj9N96Rt
Free Spreadsheet Download - Allowable costs post budget announcement
 
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Free #Spreadsheet #Download - #Allowable #costs post budget announcement Video demo: https://youtu.be/Jpa7I7PB860 Download spreadsheet: http://www.optimiseaccountants.co.uk/allowable-costs-post-the-2015-budget/#.WdOUTUyZNAY The above article discusses the three R: - Repairs - Replacement - Renewals Each of the above categories are 100% allowable to be offset against your property income, which means you pay less #tax. It is therefore important for you to manage your suppliers to ensure that invoices says "installation of a replacement kitchen" which is allowable costs against the property income rather than "installation of a new kitchen" which is not allowable and will be deemed by HMRC as a capital costs The article below discusses the use of capital allowances on certain property investments such as holiday lets and HMOs. The interesting thing about capital allowances is the fact that it is possible for you claim back any tax paid on your employment if losses are made. Article: http://www.optimiseaccountants.co.uk/changes-to-capital-allowances/#.WdOVdEyZNAY The final article in this suite is all about holiday lets. Provided that the investment meets the HMRC criteria for it to be defined as a holiday let then capital allowances may be claimed. This article looks as the type of costs that fit into the capital allowances bracket. Of course there are additional tax benefits to holiday lets including: Holdover relief on sale of the property, hold over relief in the event of your death to mitigate #IHT, the profits from holiday lets are taken into account when looking at your pension contributions allowances plus many many more Article: http://www.optimiseaccountants.co.uk/are-holiday-lets-the-next-big-thing/#.WdOVfUyZNAY
Inheritance tax (IHT) and estate planning
 
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Inheritance tax and estate planning Individuals leaving beneficiaries assets in their estate will be subject to 40% inheritance tax once their lifetime allowance of £325,000 has been exceeded. If there is a couple then the IHT allowance will be passed to their spouse if assets are also transferred to make a total £650,000 IHT free allowance. See article: http://www.optimiseaccountants.co.uk/inheritance-tax-allowances-transfer-to-spouse/#.WmklICOcZmA This will also increase if their main home exceeds £325,000to a maximum of £500,000 per individual. This means that there is a potential lifetime allowance for couples reaching £1,000,000 See article: http://www.optimiseaccountants.co.uk/how-to-benefit-from-rnrb/#.WmkojyOcZmA IHT will be payable within 12 months of death. Once it has been identified that there is a IHT liability then the executor of the estate with the solicitor will need to ensure that the appropriate IHT forms are competed along with the payment to HMRC. We have written a 7 part article on this: http://www.optimiseaccountants.co.uk/interitance-tax-toolkit-for-buy-to-let-landlords/#.WmknHCOcZmB Estate planning also involves the repayment of mortgages. For many property investors they may actually have a larger mortgage liability than the IHT tax. This is certainly the case when people take out interest only mortgages as the loan is not reduced during their life time. If people do not have liquid assets or life insurance to pay off mortgages and the IHT liabilities it may be required for them to sell assets quickly in order to pay these liabilities. If the beneficiaries are in the unfortunate position that there is a recession or the property market is weak then they may not get enough money to pay off the IHT or mortgages. See article: http://www.optimiseaccountants.co.uk/simon-says-part-4-of-9-you-are-immortal-and-do-not-need-to-worry-about-legacy-planning-really/#.WmkpRSOcZmA This is one of the good reasons why it is beneficial for individuals that do not have liquid assets to buy life insurance so that their IHT and mortgage may be paid off. Please note that the life insurance should be paid into a trust. Some people have made the mistake of having life insurance of say £500,000 that forms part of the estate. What they may not realise is that they will also pay 40% on the life insurance. In this example, the IHT on £500,000 would be £200,000. The £200,000 unnecessary IHT would not materialise if the insurance money was paid into trust. See article: http://www.optimiseaccountants.co.uk/life-insurance-and-inheritance-tax-iht-implications/#.WmkmPCOcZmA It is possible to reduce IHT by transferring assets to their beneficiaries. If they survive for 7 years then these assets may be passed without be subjected to IHT. If the person dis within 7 years then there will be a Potential Exempt transfer (PET) meaning that there will be a tapered IHT charge on the assets. See article: http://www.optimiseaccountants.co.uk/how-to-minimise-inheritance-tax/#.WmkkuCOca9Y One of the ways that individuals can minimise their IHT is to transfer their own home, which is unencumbered, to their children See article: http://www.optimiseaccountants.co.uk/transferring-main-home-into-trust-for-benefit-of-children/#.Wmkl2SOcZmA If individuals own a limited company it is possible to transfer shares during their lifetime using their annual Capital Gains Tax Allowances to avoid a CGT liability, which in turn also reduces their own asset value. The less assets they have the less IHT liabilities they will suffer. It is possible to structure their limited company using alphabet / freezer shares to lock in the current value and any future increases are immediately passed onto the beneficiaries. This is an effective plan to minimise IHT from the outset through proactive planning. See article: http://www.optimiseaccountants.co.uk/creating-freezer-shares-to-minimise-inheritance-tax-for-property-investors-and-health-care-professionals/ It is possible to use discretionary trusts to protect the wealth from beneficiaries that you feel are too young to make the right decisions or lack the maturity. They may be married to someone whereby the marriage may be failing and you wish to ensure that your assets are only passed onto your child rather than their soon to be ex-spouse. This is all made possible using a discretionary trust. See article: http://www.optimiseaccountants.co.uk/using-a-discretionary-trust-for-asset-protection-and-iht-planning/#.WmkoCiOcZmA
An Interview with: Kevin Wright
 
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Interview with Kevin Wright In this interview Kevin Wright speaks about how property investors can recycle their cash out of their property portfolio and own home to build their investments. We also get a glimpse of how he built his business, despite the personal challenges of fighting cancer. He has gone on to help property investors raise deposits for their next investment and has a variety of courses to help you start and build your property portfolio.
Course 1 of 3: Tax efficient property investment: Where do I start?
 
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Are you a high rate tax payer? Are you looking to invest in property? Are you unsure because there are so many options open to you? Do you get overwhelmed by the noise caused because of social media, other investors and networking events? If you have answered yes to the above questions then this course if for you. If you have answered no to any of the above questions then you may not benefit from this course at all. We are going to focus on: - Goals: What are goals and what do they do for you - How to measure goals now and for the next five years - What type of property is good for you with the consideration of time and money - What tax structure should be used for your property investment. As I have said before this is part 1 of 3. The other courses will deal with other factors once the above have been addressed.
Capital Gains Tax (CGT) FREE calculator - 2017/18
 
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Capital Gains Tax (CGT) FREE calculator Updated with new CGT allowances and income tax bands for 2017-18 Are you looking to sell any of your Buy to Let properties? Are you looking at ways to minimise CGT? Demo video: https://www.youtube.com/watch?v=12LqyeasFW4&t=24s Download spreadsheet here: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-calculator-for-2017-18/ We have developed a spreadsheet that you can use to understand the amount of CGT that you are likely to pay. This CGT calculator spreadsheet not only tells you the amount of CGT to pay but how you may be able to reduce it. CGT is a tax cost that reduces the amount of net cash that you will eventually receive upon selling your property. CGT is based on the sales price, less purchase price (and associated purchase costs) less any capital cost of refurbishment. This is a good start to see how CGT will affect property investors from 2017/18 Article: http://www.optimiseaccountants.co.uk/capital-gains-tax-cgt-from-201718/#.WdeV-kyZNAY We wrote another article that demonstrated ways of how you may be able to mitigate some of the CGT Article: http://www.optimiseaccountants.co.uk/minimise-capital-gains-tax-cgt-when-selling-property/#.WagT9ZOGO34 One of the ways that you can reduce CGT is to move back into a property and claim private residence relief Article: http://www.optimiseaccountants.co.uk/minimise-your-cgt-liability-on-a-house-move-back-in/#.WagT95OGO34 One of the great ways to mitigate both CGT and inheritance tax (IHT) is to transfer the property into trust and move it back out again See article: http://www.optimiseaccountants.co.uk/gifting-buy-to-lets-properties-to-children-without-capital-gains-tax-cgt-using-trusts/#.WagT-5OGO34 If you were happy to re-invest the gains from the disposal and re-invest it into an Enterprise Investment Schemes (EIS) then you can defer the CGT and obtain an income tax reducer of 30% See article: http://www.optimiseaccountants.co.uk/mitigate-capital-gains-tax-with-eis-investments/#.WagVaZN9634
Views: 1164 Optimise Accountants
Limited company considerations for property developers
 
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There are many uses for limited company for all types of business. Property developers are no different. They can be very tax efficient in the way that profits are taxed and how money may be extracted. Property developers need to be aware of the TAAR regime introduced by HMRC to prevent developers from opening and closing limited companies within quick succession. In this webinar we explored how property developers are taxed if profits are generated in their own name against that in a limited company. We will also explore what TAAR is, what the consequences are if property developers do not abide by the rules. We will also discuss how property developers can work with limited companies despite TAAR
Should I use Limited Companies - Calculator
 
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I am asked "Should I use a limited company?" And the answer is "Go work it out, right now". I have developed a spreadsheet that allows you to work out the tax advantages of using a limited company. Have fun
Salary sacrifice - Childcare and pension contributions
 
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Salary sacrifice o Thursday 13th November 2014 Book Now: o http://www.optimiseaccountants.co.uk/category_event/webinars/ Are you a busy property investor that is employed or an employee, whom has to pay for child care? Would you like to find a way of not having to pay tax or national insurance on the payments made to child care / pension contributions? The Diagnosis Tax issues need to be diagnosed in order to be understood for a remedy to be implemented. We are all busy with our employment & property investments. Some of us are so busy that we need to pay for child care. The problem with this approach is that we pay tax and national insurance on the wages that we then give to the child care providers. Is there another way? Of course there is The Treatment In this webinar I am going to share with you a way to pay for childcare and make contributions towards your pension whilst avoiding tax and national insurance.
Stamp Duty Land Tax (SDLT) considerations for property developers
 
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Stamp Duty Land Tax (SDLT) is a tax that is incurred when buying a residential or non-residential property. Given the 3% surcharges many property developers will need to look at new ways of reducing this additional tax. In this webinar we look at the different scenarios in which SDLT may be reduced for property developers.
Optimise Accountant's Book keeping for self assessment
 
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This videos show you how to use the self assessment book keeping as designed by Optimise Accountants
Allowable Costs Webinar
 
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Allowable Costs Webinar Book here NOW: http://www.optimiseaccountants.co.uk/event/allowable-costs-webinar/ Wednesday 22nd July 7pm Are you paying too much tax because you are not claiming all the allowable costs? Are you confused as to what is allowable and what’s not? If you have answered yes to either of the above questions then this webinar is for you. The Diagnosis Tax issues need to be diagnosed in order to be understood for a remedy to be implemented. People are paying too much tax, fact! They are paying too much tax because they are unsure what costs may be offset against their property income. As such they decide not to include the costs in fear that HMRC will penalise them………..and they would be right! If you claim costs incorrectly then HMRC will give you a financial penalty, claim the tax back and charge you interest. If they find an opportunity to go back several years because of a few errors then they will. This then opens up a new can of worms. There are also issues with how you treat certain costs. I believe that they fall into three categories 1) allowable against your property income 2) allowable against Capital Gains Tax and 3) not allowable. Are you 100% clear what costs fall into each of these categories? If not then this 30 minute webinar will be just for you. The Treatment Applying the right tax reducing medicine to your tax illness. By joining this webinar we will guide you through all the types of property costs and how they may be categorised. Applying the treatment Now we have identified the treatment why not register for this webinar so that you can apply the treatment to your tax pains? After you have attended the webinar you will also be given the 10 page ebook “Allowable costs 2nd edition for 2015” so that you can be certain that you are claiming all the possible costs and feel comfortable that HMRC will not be knocking on your door handing out penalties.
Value Added Tax (VAT) considerations for property investors
 
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Value Added Tax (VAT) considerations for property investors Did you know that the standard cost of 20% may be reduced if not removed altogether on your refurbishment costs? Did you know that some commercial properties require you to pay 20% VAT on top of the property price? It is an unknown fact for many property investors that VAT can indeed be reduced or mitigated in full. video: https://www.youtube.com/watch?v=noV0kYJSzmk&t=21s We have written an article that talks about the basics of VAT for property investors to demonstrate if VAT needs to be charged by you or if you are able to reclaim VAT back. Article: http://www.optimiseaccountants.co.uk/vat-basics-for-property-investors/#.Waj97NOGORs We have also written an article about Houses of Multiple Occupancy (HMOs), where if you meet certain criteria you can reduce the VAT rate on elements of your refurbishment costs from 20% to 5% Article: http://www.optimiseaccountants.co.uk/cut-vat-from-20-to-5-on-conversions-self-contained-hmos-bedsits/#.Waj98NOGORs You can also have a reduced rate on refurbishment costs from 20% to 5% if you buy properties that have been empty for more than two years. Not only is the house price reduced because it may be in a bad state but you will also benefit from the reduced refurbishment costs. Article: http://www.optimiseaccountants.co.uk/pay-just-5-vat-on-refurb-work-on-properties-that-have-been-empty-for-two-years-or-more/#.WakAu9N96Rs For many investors they are not aware that VAT needs to be paid on certain commercial properties. This can come as a shock to many as it is not always obvious. By the time you find out it is too late and you have to buy the more expensive property or lose your deposit. In this article we discuss how this element of VAT may be removed altogether: http://www.optimiseaccountants.co.uk/1614d-form-to-remove-vat-from-commercial-building-purchases/#.Waj-WtN96Rs You may be aware that new property developments are zero rated for VAT purposes. However, some property investors are not aware that the VAT on development costs can be claimed back. Be warned it can be a long administration process. Article: http://www.optimiseaccountants.co.uk/claiming-back-100-vat-on-your-property-development/#.Waj-XNN96Rs
Property Investment Schedule - Property portfolio reporting £
 
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The property investment schedules property investors to track the financial performance and manage their property portfolios. This spreadsheet allows users to: - Enter details of their property portfolio - Enter income and expenses into the property book keeping tab - Enter the mileage - travelling to see properties, letting / estate agents etc - Review the financial performance of the properties - Analyse the performance of their properties on a monthly basis - Keep track of their tenants - Keep track of the utility companies - Keep track of trades people that help maintain their property
Section 24 - Mortgage Interest Relief - how does it affect property investors?
 
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Louise and Rob from Optimise Accountants discuss Mortgage Interest Relief. https://www.optimiseaccountants.co.uk/
Finance, tax and wealth planning - considerations for the busy entrepreneur  people
 
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Finance, tax and wealth planning - considerations for the busy people Are you keeping your fair share of income earnt or is HMRC taking more than what seems reasonable? Are you protecting your hard-earned wealth for future generations or are your assets under threat from HMRC’s Inheritance Tax or family mis-use? Video: https://youtu.be/iH9rHrZExis How will section 24 affect you? Many property investors are fearful of the mortgage interest relief changes that will affect their tax position. So they should. However, there are a lot of people that are main changes without thinking about the long-term pans. We are seeing a lot of property investors that are making hasty decisions because of the materials they read on social media. However, with careful consideration they may realise that the best form of action is no action, at least in the short term. Many people are jumping ahead incorporating their property business and I think this could be a mistake as there are plenty of other solutions to be considered. Article: http://www.optimiseaccountants.co.uk/the-truth-about-stamp-duty-and-partnershipsllps/#.WeWvBkyZPBI Many people do not like to talk about their death. That I understand. Let’s be fair we all want to live for a very long time. Sadly, the reality is that we will all pass away at some point. What will you leave behind: fond memories or financial chaos? If you do not write a will and you are married then the entire assets will be transferred to your spouse. What if this was not your intention? Too bad. A will is therefore a powerful document to ensure that you leave to your loved ones the assets that you intended them to have. Article: http://www.optimiseaccountants.co.uk/how-to-minimise-inheritance-tax/#.WeWuRkyZPBJ There are many ways in which you can minimise IHT through careful tax planning. No IHT is due when you make gifts to your loved ones provided that you live within 7 years. The alternative to this is to increase debt. Article: http://www.optimiseaccountants.co.uk/how-to-minimise-inheritance-tax/#.WeWt90yZPBI Your loved ones may be in a situation where they cannot afford to pay off the buy to let mortgages or IHT liabilities that are left behind. Many families may need to sell properties to pay off these liabilities but this may not be possible in a recession. In that case you may need to use insurance produce or build up liquid investments to pay off these liabilities. Wait a minute, what about the situation your parents are likely to leave you? Article: http://www.optimiseaccountants.co.uk/life-insurance-and-inheritance-tax-iht-implications/#.WeXp4EyZPBI Finally, you may have a situation whereby you wish to leave you hard earned assets to your children but you do not trust their financial decision making. Worst still you may know that their spouse is likely to divorce them and as such you wish to protect your assets. You can use a discretionary trust to ensure that your loved ones only get the capital of your investments if certain conditions are met. This not only protect them from themselves but protects your assets from those that you do not wish to receive such assets Article: http://www.optimiseaccountants.co.uk/using-a-discretionary-trust-for-asset-protection-and-iht-planning/#.WeWtS0yZPBJ If you now have more questions than answers then feel free to use our new financial, wealth and tax planning service Website: http://www.optimiseaccountants.co.uk/wealth-management/
Property Investment Schedule - Book Keeping   Buying a property
 
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The property investment schedules property investors to track the financial performance and manage their property portfolios. This spreadsheet allows users to: - Enter details of their property portfolio - Enter income and expenses into the property book keeping tab - Enter the mileage - travelling to see properties, letting / estate agents etc - Review the financial performance of the properties - Analyse the performance of their properties on a monthly basis - Keep track of their tenants - Keep track of the utility companies - Keep track of trades people that help maintain their property
IR35 implications for GP locum doctors that use a limited company
 
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IR35 implications for GP locum doctors that use a limited company Are you a GP locum doctor? Do you use a limited company to be tax efficient? HMRC a long time ago brought in new tax legislation called IR35 to prevent IT contractors invoicing the NHS for their work even though they were deemed to be employees. In fact, the NHS made a lot of IT personnel redundant and restated their position a day later as a contractor. The NHS did this to save employer’s national insurance and to avoid employee / employer relationships. HMRC have now targeted GP locum doctors that carry out work for just one or two GPs. This means that are forcing GP’s to change the status of the locum from being self-employed to an employee. This means the locum GP will start to pay tax similarly to an employee under PAYE and will also pay employers national insurance. In this webinar we will discuss the background to IR35 and how it may affect GP locum doctors. There are many ways that you can mitigate the impact of IR35, which we discuss in this webinar
Capital Gains Tax Spreadsheet Video
 
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www.optimiseaccountants.co.uk
5% VAT on HMOs refurbishment
 
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Did you know that the standard cost of 20% may be reduced if not removed altogether on your refurbishment costs? Did you know that some commercial properties require you to pay 20% VAT on top of the property price? It is an unknown fact for many property investors that VAT can indeed be reduced or mitigated in full. video: https://www.youtube.com/watch?v=noV0kYJSzmk&t=21s We have written an article that talks about the basics of VAT for property investors to demonstrate if VAT needs to be charged by you or if you are able to reclaim VAT back. Article: http://www.optimiseaccountants.co.uk/vat-basics-for-property-investors/#.Waj97NOGORs We have also written an article about Houses of Multiple Occupancy (HMOs), where if you meet certain criteria you can reduce the VAT rate on elements of your refurbishment costs from 20% to 5% Article: http://www.optimiseaccountants.co.uk/cut-vat-from-20-to-5-on-conversions-self-contained-hmos-bedsits/#.Waj98NOGORs You can also have a reduced rate on refurbishment costs from 20% to 5% if you buy properties that have been empty for more than two years. Not only is the house price reduced because it may be in a bad state but you will also benefit from the reduced refurbishment costs. Article: http://www.optimiseaccountants.co.uk/pay-just-5-vat-on-refurb-work-on-properties-that-have-been-empty-for-two-years-or-more/#.WakAu9N96Rs For many investors they are not aware that VAT needs to be paid on certain commercial properties. This can come as a shock to many as it is not always obvious. By the time you find out it is too late and you have to buy the more expensive property or lose your deposit. In this article we discuss how this element of VAT may be removed altogether: http://www.optimiseaccountants.co.uk/1614d-form-to-remove-vat-from-commercial-building-purchases/#.Waj-WtN96Rs You may be aware that new property developments are zero rated for VAT purposes. However, some property investors are not aware that the VAT on development costs can be claimed back. Be warned it can be a long administration process. Article: http://www.optimiseaccountants.co.uk/claiming-back-100-vat-on-your-property-development/#.Waj-XNN96Rs
Estate Planning and Inheritance Tax
 
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Louise and Rob from Optimise Accountants discuss Estate Planning and Inheritance Tax. https://www.optimiseaccountants.co.uk/
Optimise Property Tax Specialist - Our services
 
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Want to be certain you’re dealing with specialists who practice what they preach? Optimise Accountants has been established since 2003 and its owners, Louise & Simon Misiewicz, have been investing in property, tax efficiently, since 2006. We’re available to our clients 7.30am to 6.30pm Monday to Friday and 9am to 1pm Saturdays. How many accountants offer those kind of hours every week? If you wanted to speak with us before you request a proposal then please book some time with us using the below calendar. You will receive an email notification to let you know that your booking has been secured. Book a call with us today to see how we can helo you http://www.optimiseaccountants.co.uk/accountancytaxservices/
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An interview with Trevor Cutmore
 
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I had the delight to interview the property investor Trevor Cutmore who organises a mentorship programme called the table of 12 (http://tableoftwelve.co.uk/) In this interview, I asked Trevor what his highs and lows of property investing and what strategies he is focusing on for the rest of 2018 and going into 2019.
Property Investment Schedule - Property sheets
 
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The property investment schedules property investors to track the financial performance and manage their property portfolios. This spreadsheet allows users to: - Enter details of their property portfolio - Enter income and expenses into the property book keeping tab - Enter the mileage - travelling to see properties, letting / estate agents etc - Review the financial performance of the properties - Analyse the performance of their properties on a monthly basis - Keep track of their tenants - Keep track of the utility companies - Keep track of trades people that help maintain their property
Optimise Accountants - Tax Consultancy Calls
 
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We are tax specialists that work with two specific types of clients: 1 - Property invetsors 2 - Medical professionals such as Doctors, GPs, Locus, Dentists Book your tax call consultancy call here:http://www.optimiseaccountants.co.uk Process o Book your tax call using the above link and upload your questions and documents. Use the coupon code "YouTube25" to get 25% discount off your tax call o Our tax advisors will research the solutions ahead of the call o We discuss the solutions on the call o We follow up our call with an email within two working days, which is accompanied by the HMRC and UK tax law links. Specialists skills: o Income Tax mitigation o Capital Gains Tax (CGT) avoidance when selling properties o Tax advice and support for UK residents and non-UK residents o Incorporation to mitigate Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT) o VAT reduction on property refurbishment and developments o Inheritance tax and wealth planning strategies http://www.optimiseaccountants.co.uk
Property Investment Schedule - Utilities and Supplies
 
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The property investment schedules property investors to track the financial performance and manage their property portfolios. This spreadsheet allows users to: - Enter details of their property portfolio - Enter income and expenses into the property book keeping tab - Enter the mileage - travelling to see properties, letting / estate agents etc - Review the financial performance of the properties - Analyse the performance of their properties on a monthly basis - Keep track of their tenants - Keep track of the utility companies - Keep track of trades people that help maintain their property