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oatbake

Landlords all climbing into the same lifeboat

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https://www.lettingagenttoday.co.uk/breaking-news/2018/6/survey-shows-the-rise-and-rise-of-buy-to-let-limited-companies?source=newsticker

What could go wrong? 🙂

S24b (limited companies) is now such an open goal it simply has to happen. Personally, I think the government will wait for a few more to commit before announcing it though:

"New research nearly two out of five landlords will use limited companies to buy properties over the next year compared to just over a quarter as individuals.

Among landlords with more than four properties the percentage buying new property via a limited company rises to 42 per cent while among those with up to three properties it drops to 31 per cent"

 

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15 hours ago, oatbake said:

https://www.lettingagenttoday.co.uk/breaking-news/2018/6/survey-shows-the-rise-and-rise-of-buy-to-let-limited-companies?source=newsticker

What could go wrong? 🙂

S24b (limited companies) is now such an open goal it simply has to happen. Personally, I think the government will wait for a few more to commit before announcing it though:

"New research nearly two out of five landlords will use limited companies to buy properties over the next year compared to just over a quarter as individuals.

Among landlords with more than four properties the percentage buying new property via a limited company rises to 42 per cent while among those with up to three properties it drops to 31 per cent"

 

An old expat friend of mine has put his 12 BTL's into a limited company. However all his properties are owned outright so not sure this will affect him too much. 

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6 minutes ago, Kurt Barlow said:

An old expat friend of mine has put his 12 BTL's into a limited company. However all his properties are owned outright so not sure this will affect him too much. 

Won't effect him at all - S24 is to discourage the cash poor from borrowing too much..

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2 minutes ago, Houdini said:

Won't effect him at all - S24 is to discourage the cash poor from borrowing too much..

Youd sitll need to so tell the houses to the Ltd Co.

A Ltd Co is legally seperate entity.

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6 minutes ago, Houdini said:

Won't effect him at all - S24 is to discourage the cash poor from borrowing too much..

Its not just BTLers.

Cos of debt is going to rie a lot.

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20 minutes ago, spyguy said:

Youd sitll need to so tell the houses to the Ltd Co.

A Ltd Co is legally seperate entity.

yes and pay Stamp Duty

Also CGT on buy to let & second home sales is changing.

HMRC is planning to bring in new rules from April 2020 which will require individuals and trustees disposing of a residential property to make a payment on account of the CGT within 30 days of the completion of the sale. Sellers will have to calculate, report and pay the CGT that they believe is due within that window. Previously you had between 10-22 months after the sale to pay as you declared it on your self assessment tax forms.

Edited by ubuntu

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1 hour ago, spyguy said:

Its not just BTLers.

Cos of debt is going to rie a lot.

A bit racist mate.

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Looks to me many of them are trying to jump into the HMS Air BnB.

Only one small issue with that plan. They are about 5 years too late. Landlord in my block of flats currently just doing that after the Spanish couple that lived there for years have moved out. I really don't think he gets the sheer number of Air BnB in Edinburgh just now.

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1 hour ago, Houdini said:

Won't effect him at all - S24 is to discourage the cash poor from borrowing too much..

Not just the cash poor. A BTL former colleague told me years ago that if you won the lottery you should not buy 10 £100K houses outright and let them out but 100 £100K on mortgages with a £10k deposit.  IIRC the reason was because of the ability to deduct interest from your tax bill.

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3 hours ago, ccc said:

Looks to me many of them are trying to jump into the HMS Air BnB.

Only one small issue with that plan. They are about 5 years too late. Landlord in my block of flats currently just doing that after the Spanish couple that lived there for years have moved out. I really don't think he gets the sheer number of Air BnB in Edinburgh just now.

What they wont realise with airbnb is that although they can get their first 5k or thereabouts tax free each year under the rent a room scheme, they have to pay business rates (Non-Domestic Rates, NDR) rather than council tax on the property if it is classed as self catering. That assessment will see a much larger NDR bill instead of their lower Council tax bill

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1 minute ago, crazypabs said:

What they wont realise with airbnb is that although they can get their first 5k or thereabouts tax free each year under the rent a room scheme, they have to pay business rates (Non-Domestic Rates, NDR) rather than council tax on the property if it is classed as self catering. That assessment will see a much larger NDR bill instead of their lower Council tax bill

I doubt very much many of them are doing this. Hence why I always state if HMRC want an easy win of billions then just go after air BNB for details of their customers to compare against self assessment returns. Easy money.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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