The best strategy if you’re planning to sell some properties to pay down debt

by Mark Alexander

15:15 PM, 30th April 2017
About A year ago

The best strategy if you’re planning to sell some properties to pay down debt

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The best strategy if you’re planning to sell some properties to pay down debt

Normally, if you sell your properties you will realise a capital gain, which is the difference between the purchase price and the sale price. This gain is then added to your income and if you’re a higher rate tax-payer you will pay CGT at a rate of 28% of the gain. 

However ….

Did you know that if you sell ALL of your properties to your own limited company a form of tax relief exists to ‘wash out’ those gains?

The value of the properties for calculating tax on capital appreciation then becomes the value at which you sold your properties to your company. Therefore, if you then sell them on to a third party for the same price there is no tax to pay. This means you could pay down your mortgages without having to pay the CGT on your profits.

There are, of course, qualifying criteria but this is explained in our PowerPoint presentation, which can be purchased for just £20 by completing the form below.

Landlord Tax Planning Presentation Download

  • A Microsoft PowerPoint Presentation for PC users.
    Price: £ 20.00
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Comments

Panayiotis Konaris

18:24 PM, 1st May 2017
About A year ago

I paid to download the presentation but could not print it. Is it possible to have
a printed version?

Mark Alexander

21:33 PM, 1st May 2017
About A year ago

Reply to the comment left by "George Loizides" at "01/05/2017 - 18:24":

I will see what I can do in the morning. No promises though.
.

Mark Shine

21:42 PM, 1st May 2017
About A year ago

@ Mark: why not simply click on "save as" in powerpoint and then choose "PDF" from the options given?

Mark Alexander

22:15 PM, 1st May 2017
About A year ago

Reply to the comment left by "Mark Shine" at "01/05/2017 - 21:42":

That was what I had in mind but I've never tried it before, hence "no promises".

I will give it a go when I'm back at my desk in the morning.
.

Mark Alexander

17:34 PM, 2nd May 2017
About A year ago

Reply to the comment left by "George Loizides" at "01/05/2017 - 18:24":

Hi George

Thank you for this idea, I think a printed version could be very useful for a lot of people, and especially those who don't have the PowerPoint Software. A PDF download version is now available via the link below for the same price.

https://www.property118.com/landlord-tax-planning-presentation-pdf-format/98255/

To say thank you, and as you had already purchased the PowerPoint version anyway, I have sent you a free PDF copy to your email address.
.

Steve Harris

15:29 PM, 4th May 2017
About A year ago

Very misleading having a title of "The best strategy if you're planning to sell......." It certainly may NOT be the best strategy. All strategies are dependant on personal circumstances. I enjoy the site but hopefully it won't get to salesy.

Helen James

22:22 PM, 4th May 2017
About A year ago

But won't there be CGT to pay when a person sells properties to their company?

Mark Alexander

6:05 AM, 5th May 2017
About A year ago

Reply to the comment left by "Helen James" at "04/05/2017 - 22:22":

Possibly, but the presentation explains the legislation which provides tax relief eto enable landlords to roll the gains into the shares created in the company into which the equity in the portfolio is incorporated. Providing the finance outstanding does not exceed the base costs of the property portfolio the equity converted into shares can 'wash-out' the capital gains.

It's all explained in the presentation.
.

N E Landlord

12:55 PM, 6th May 2017
About A year ago

Is it likely in most cases that anyone with mortgages would either have to pay them off completely or remortgage with lenders willing to lend to a limited company.

Also that Stamp Duty would have to be paid on each property?

Mark Alexander

12:57 PM, 6th May 2017
About A year ago

Reply to the comment left by "Nick J" at "06/05/2017 - 12:55":

Hi Nick

The answers to your questions are both No, if you structure your business properly.

How to do this is contained in the presentation.
.

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