Warwick

The main reason used cars are worth so little is because new cars are over-priced. Substitute the List price in £ sterling for US $ to get a better idea of the new car's value.

Yes, but any adverse currency movement could increase the size of the loan significantly - wiping out any interest savings.

In the UK, there is nothing to prevent a LL from selling a tenanted property. However, the new owner is still bound by the Tenancy Agreement.

Seconded.

Client enquired about putting his house in Kew Green on the market a few months ago - consensus was £800,000. Now told (by 2 EAs) that it's £750,000 in the current market.

There are various options open to unsecured creditors : 1. Attachment of earnings. 2. Charging orders (over property, shares etc). 3. Petition for Bankruptcy (if debt is over £750).

I have not seen the full text - but the CGT Exemption for each individual is only going up from £8800 (2006-07) to £9200 (2007-08) which was already known. I am not aware of any extra for a Married Couple.

A BTL can never qualify as a PPR, if it is always let out (except for job related accommodation). However, if the LL were to live in the property for a significant length of time after the tenant(s) has moved out - (say) 12 months, that could be enough to trigger PPR exemption of at least 36 months (plus Lettings Relief etc).

He/she is wrong. The 36 month rule is an absolute - there are no exceptions. The last 36 months of OWNERSHIP are always treated as exempt from CGT, provided the property has been a PPR at some stage. Also, Lettings Relief (max of £40,000 per owner) will be available if needed. Refer him/her to HMRC's Helpsheet IR 283 : http://www.hmrc.gov.uk/helpsheets/ir283.pdf

That thread also mentions the demand for conveyancing solicitors. Well, a lot of legal firms went bust in the early 1990s, as they had switched the bullk of their work to conveyancing which then went doen the toilet when the Crash took hold.

Aren't Kensington Mortgage Company looking for a buyer?

It's good to know that there are responsible LLs around. Don't forget to claim the mileage/cost against your rental profits.

IIRC, the main downside to that is if the HB is reclaimed by the Local Authority - it will be you who has to pay it back.

Fair enough. My MEWed £100,000 is going on the favourite in 4.30 at Epsom races.

It depends normally on the interest rate and length of loan. For example : a £100,000 loan at 6.0% over 25 years. At half-way (after 150 payments), the balance remaining would be ~ £68,000. This would mean that nearly 1/3rd would have been paid off.

1. Max of 4x salary. 2. Max LTV of 80%. 3. No variable rate mortgages. 4. CGT exemption on own home limited to £500,000.

And Lettings Relief (max. of £40,000 per owner) can extend the zero CGT for (possibly) quite a few more years after the 3 year period has expired.

That's correct. The only exception are FHLs (Furnished Holiday Lets) - where Losses can be set against general income and create a tax refund, where appropriate. Also, FHLs qualify for Business Asset Taper Relief, which means a maximum effective rate of 10% for CGT, after 2 years. Note that Losses still have to be notifed to HMRC to be claimed as Losses.

Current rate (tax free) is 3.60% p.a. This equates to 6.00% for a 40% taxpayer, and 4.5% p.a. for a Basic Rate payer. So, for the former, it's not a bad deal. Quite a few of my clients hold the maximum £30,000 - most have won at around the average, although one did win £25,000.

IIRC, HMRC 's debts ceased to have Preferential status after 2003. So HMRC should be treated just another unsecured creditor.

Yes, it is similar to Gifted/Vendor Deposit schemes. But it does rather beg the question of why someone would accept 85% of MV, if he/she could get 100%? It may require a "sympathetic" Valuer.

Only the interest element of the mortgage payment is tax deductible. But for an IO mortgage that would mean all of the payment.

Yes, a lot of people think this - but it's the taxpayer's responsibility to inform HMRC of any taxable income or gains, if no Self Assessment Tax Return has been issued to him/her. Penalty for non compliance can be (up to) the amount of the tax outstanding at the due date.

The 10% W&T Allowance only applies to furnished Lets.

"Ignorance of the Law is no defence." Yes, under Self Assessment, the onus is on the taxpayer to calculate the correct amount of tax due and pay it over to HMRC within the relevant time limits.