2016 in Review and Goals for 2017Make Text Bigger
Thank you all for your support this year, 2016 has been a good one for us.
My wife and I emigrated to Malta, visited the UK and Rome and we are now in Russia celebrating a white Christmas. Above anything else we enjoy spending time with our family and sharing the good life with them, and this year has seen plenty of that.
On the business front, we defeated a financial tyrant in the form of The West Brom Building Society and secured refunds of £27,500,000 of over-charged mortgage interest for our fellow landlords. We received the Achievement of The Year Award from the Property Investor Awards, which was a lovely way to celebrate the efforts of a huge team who contributed to our three year legal battle. Thank you to all who were involved.
We successfully completed a Crowdfunding project and launched The Landlords Union. One of our goals for 2017 is to forge closer working relationships with professional bodies whose members supply services to landlords.
We have helped hundreds of landlords to restructure their businesses to ensure they continue to prosper despite the ludicrously discriminating Government changes to mortgage interest no longer being treated as a business expense for private landlords.
We move into 2017 in an extremely positive frame of mind and look forward to sharing another awesome year with you all.
2017 Goal to Help Individual Landlords
As of 2017 your taxable income will be calculated differently if you are an individual landlord.
When the sum total of your taxable income exceeds £43,000 you will pay more tax if you have buy-to-let mortgages.
The change is that buy-to-let mortgage interest will be treated as if it is taxable income. In 2017 a quarter of your buy to let mortgage interest will not be allowed to be claimed as a business expense, that figure increases to 50% in 2018, 75% in 2019 and 100% by 2020.
These changes to mortgage interest relief will begin to affect your finances from April 2017 so the best time to take advice is NOW!
Has you accountant provided you with a personal illustration of how the changes to mortgage interest relief will affect your personal finances?
Has your accountant explained the benefits of creating a partnership?
Has your accountant explained that you can form a partnership with a Limited Company under your control, and that you can make children over the age of 18 shareholders in that company?
Has your accountant explained that you can transfer just 1% of the beneficial interest in your property rental business to form a partnership with a Limited Company under your control?
Has your accountant explained that partners (including your limited company) can be paid any share of profits, regardless of how much equity they own?
Has your accountant explained that companies only pay 20% tax on profits from rental profit and capital gains?
Has your accountant formed a limited company for you?
Has your accountant explained that you need an HMRC partnership reference number and applied to obtain one?
Has your accountant explained that business partnership can be incorporated after three years without having to pay Stamp Duty?
Has your accountant explained that tax relief is available to negate CGT for businesses when they incorporate?
Has your accountant explained that if you subsequently decide to incorporate your partnership that you can avoid the need to refinance using BICT?
Unless you can answer yes to all of these questions you need our help.
Please note that Property118.com does not promote “tax schemes”.
All recommendations offered by Property118 are based on legislation and, upon request, we are happy to link you to Government websites containing the legislation our recommendations are based on.
We can provide an illustration of how the tax changes will affect you if you do nothing, suggest the most appropriate restructure plan for you, obtain quotes for implementation of the restructure and refer you to the most appropriate members of our professional adviser panel to complete matters.
Every professional adviser on our panel is qualified, regulated, experienced and fully insured to implement any restructuring we recommend.Show Form To Book A Tax Planning Consultation