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Monday 17th January 2011
Total Number of Property118
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Bio
UK landlord since 1989.
Wedded to property, finance, tax and law since 1987.
Enjoying financial freedom since 2003 and location independence since 2016.
Homes in Malta, Florida and Central Russia but very much British with a UK property rental and development business.
Founder of Property118.com - “facilitating the sharing of best practice among UK landlords and associated professionals”
Happy to be interviewed on your Podcast, in Clubhouse, your YouTube channel and other online events.
My speciality is landlord tax planning and I head a team of 10 specialist Tax Consultants and four Tax Barristers. We are recruiting to meet demand.
I don’t offer mentoring or training as I am semi retired and enjoying a fantastic work/life balance, but I do comment frequently and answer questions posted here on Property118.
15:37 PM, 9th December 2024, About 3 days ago
Hi H
This wouldn't really be an incorporation as such. You would just be selling the house to your company.
In terms of proving the current value, if the property has no mortgage then I would recommend Hometrack. It will cost you £20. If it does need to be refinanced you can obviously use the mortgage valuation.
The value of the property at the date of purchase should be shown at HM Land Registry, so no problem there. Also, as you say, there will be no CGT to pay if the property hasn't increased in value. However, you will need to pay the 5% SDLT surcharge.
If you have any further questions please ask me here.... Read More
10:44 AM, 30th November 2024, About 2 weeks ago
Reply to the comment left by steve watt at 30/11/2024 - 10:31
The article was drafted and scheduled for later publication as part of a series of articles prior to the increase to 5% Now corrected, thank you.... Read More
9:03 AM, 28th November 2024, About 2 weeks ago
New electric cars are not a fair comparison though Mick.
A better one might be a rule to say that all ICE car manufacturers must modify all cars they previously sold to be electric.... Read More
22:33 PM, 25th November 2024, About 2 weeks ago
Reply to the comment left by Crouchender at 25/11/2024 - 22:08
I think the next General Election will be a snap election within three years and the outcome of it will be a Conservative/Reform alliance. Only time will tell whether I am right and whether there is still a PRS to save at that point.... Read More
21:58 PM, 25th November 2024, About 2 weeks ago
Also, New Zealand’s equivalent to the UK’s Section 24, which restricted the deductibility of interest expenses on residential rental properties, was introduced in March 2021. This policy was in effect for approximately three years. In late March 2024, the New Zealand Parliament passed legislation restoring full interest deductibility for residential investment properties, effective from April 2024. 
Link https://lwb.co.nz/content/yes-landlords-gain-from-the-repeal-of-interest-deductibility-rules-but-it-was-a-flawed-law-from-the-outset/... Read More
9:54 AM, 25th November 2024, About 2 weeks ago
Reply to the comment left by Adrian Alderton at 25/11/2024 - 09:45
Somebody told me recently that the average NRLA member only owns 4 properties. If that is true, it's a sign that most of the serious players in the market do not see the NRLA as being a representative voice for them, and/or that they are just not listening to the people they should be targeting as members.... Read More
16:51 PM, 8th November 2024, About a month ago
Shares can indeed be gifted, just as properties can, but not without crystallising any CGT they might be pregnant with.... Read More
16:39 PM, 8th November 2024, About a month ago
Reply to the comment left by NewYorkie at 08/11/2024 - 14:27
Incorpration doesn't "avoid" CGT. Instead it rolls capital gains up to the point of incorporation into the company shares. This can be particularly helpful if the company plans to sell some properties to reinvest elsewhere or to de-leverage. The CGT only falls due if the shares in the company are disposed of or if the company is liquidated prior to death.
Incorporation does not avoid IHT either, but it can make IHT planning far more manageable. For example, the value of the founders shares can be frozen at incorporation and the future growth can accrue to a separate class of shares owned by a Discretionary Trust for the bloodline of the founders, or indeed by the founders next generation.
The above is not to be regarded as comprehensive advice, but instead is intended to provides some further insight into what is achievable.... Read More
10:23 AM, 8th November 2024, About a month ago
The X Tweet that the Crusader is referring to has blown up on Social Media. I first saw it posted on a landlord Facebook Group and it got 86 comments in a matter of minutes.
As soon as I saw it I reported it to Facebook as Hate Speech and also for inciting criminal activity including theft.
I would urge all landlords in Scotland to familiarise themselves with the name and face of this individual and his friends to avoid the carnage that would undoubtedly follow from a bad decision to give him the keys to their property.
In fact, I was so incensed that I did a bit more digging, found the details of his full name, employer and other affiliations and came up with a few extra ways (all perfectly legal and above board) to serve some well deserved karma back to him.... Read More
15:02 PM, 7th November 2024, About a month ago
Apparently, he's a practicing barrister at https://gardencourtchambers.co.uk/barrister/nick-bano/ and works with the homeless.
It looks to me like he lives with his clients too!... Read More
15:54 PM, 23rd October 2024, About 2 months ago
Reply to the comment left by PAUL BARTLETT at 23/10/2024 - 15:48
On the day of purchase then yes. However, in future the property value and the mortgage may have increased. In that scenario, the calculation is more complex. A persons positive capital account balance is the amount of money they invested into the business AND retained from profits/losses over the life of the business MINUS the amount of money they withdraw from the business including payments of tax.... Read More
18:15 PM, 18th October 2024, About 2 months ago
They need to bring back CGT indexation allowances and taper relief.
Indexation Allowance and Taper Relief were regarded as fair because they aligned the taxation of capital gains with principles of equity, particularly by ensuring that only real economic gains were taxed and by encouraging long-term investment. Here’s why they were seen as fair:
Indexation Allowance:
Protection from inflation: Indexation adjusted the base cost of an asset in line with inflation, meaning that taxpayers would not be taxed on “paper gains” that arose purely from inflation. This was seen as equitable because it ensured that CGT applied only to actual increases in the asset’s real value, not the inflationary increase.
Neutrality: By factoring in inflation, the allowance helped maintain fairness across different economic periods, ensuring that individuals and businesses did not suffer from high taxes in periods of rising inflation, where asset values increased only in nominal terms.
Taper Relief
Encouragement of long-term investment: Taper Relief incentivised holding assets for longer periods by reducing the taxable gain based on how long the asset had been held. This was seen as fair because it rewarded patient, long-term investors who contributed to economic stability, as opposed to those making short-term speculative gains.
Progressive reduction in tax burden: The tapering effect meant that, over time, individuals could expect a lower CGT rate on their gains, which was particularly appealing for entrepreneurs and business owners looking to grow assets over the long term. The longer the asset was held, the more tax-efficient it became, which was viewed as fair to those who made lasting investments.
Overall, these reliefs were seen as reflecting economic reality and promoting investment behaviour that was considered beneficial for the wider economy, while avoiding taxing gains that were merely nominal due to inflation or short-term price movements.... Read More
12:36 PM, 13th October 2024, About 2 months ago
Reply to the comment left by Jack55 at 13/10/2024 - 09:27
There are always pre budget rumours. Only time will tell which ones are true... Read More
8:34 AM, 13th October 2024, About 2 months ago
Reply to the comment left by Ian Simpson at 13/10/2024 - 07:17
It sounds like you used a process called novation as opposed to SIS.
Without significantly more information it is not possible to comment on your directors loan. Did you actually inject cash into the company? If if was just a balance sheet transaction with no cash actually changing hands at the point of incorporating the CGT should have been paid then.
If you rolled capital gains into shares using s162 relief the CGT you deferred will not fall due until you dispose of the shares or wind up the company.... Read More
10:36 AM, 12th October 2024, About 2 months ago
Reply to the comment left by Paul at 12/10/2024 - 10:25
This was not written to attract new clients.
Good luck with your planning.... Read More
8:57 AM, 11th October 2024, About 2 months ago
Reply to the comment left by PAUL BARTLETT at 11/10/2024 - 01:02
Unfortunately, I very much doubt we will be vindicated in time.... Read More
21:13 PM, 10th October 2024, About 2 months ago
Reply to the comment left by Southern Boyuk at 10/10/2024 - 21:03
I think you’ve posted your comment on the wrong thread... Read More
12:40 PM, 10th October 2024, About 2 months ago
Reply to the comment left by Hugh Baily at 10/10/2024 - 11:59
Understood, thank you 🙏🏻
How do you rate this general overview in this thread? Please bear in mind that our full Skeleton Arguments run to over 50 pages.... Read More
11:36 AM, 10th October 2024, About 2 months ago
Reply to the comment left by Hugh Baily at 10/10/2024 - 11:12
It would also upset the Governments build to rent friends, you know, the ones that make large donations to them... Read More
10:17 AM, 10th October 2024, About 2 months ago
Reply to the comment left by Hugh Baily at 10/10/2024 - 09:53
Time will tell.
I don't think the Government could make this work even if they wanted to.... Read More