Summer Budget 2015 – Landlords Reactions

Annoyingly, the commentator, Jenny something, just now on the Press Preview, when talking about the Labour Conference, said something along the lines of ‘yes, we do all sympathise with cracking down on the likes of google etc… AND THE BUY TO LET LANDLORDS WITH THEIR TAX BREAKS – referring to the Shadow Chancellor’s speech.
Still on the Labour theme, I spotted Angela Eagle, Shadow Business Secretary, earlier on BBC Parliament going on about supporting business – so I will write to her and advise others to also do so. We need Labour on our side… and I think we could get that if we could only pin them down to actually listen to what it means.

can anyone comment on how partnerships work. apparently you can be a partner with a ltd company

so could a landlord with a portfolio of say 100 homes become a partner with a LTD and run the business together?

Lets say the LTD owned 90% of the share of the partnership and the Human 10%. How does the accounting work then? interest as a cost is ok as a LTD is involved?

also would 90% of the profits then be paid to the LTD which would pay 18% on it and 10% of the profits to the human who would pay income taxes on it

general any info on partnership structures and their potential benefit in this case would be welcome

Reply to the comment left by “Roger Rabbit” at “29/09/2015 – 00:00“:

The crucial point with llp with a ltd co is the portion of lease turnover taken into the company say 90% and can you legally shift 90% of interest arising under yourself as a sole trader.
If this is possible to shift income and expenditure without massive refinancing =GREAT

Reply to the comment left by “Roger Rabbit” at “29/09/2015 – 00:00“:

Limited liability partnership (LLP)
a sole trader and limited company

https://www.gov.uk/business-legal-structures/limited-partnership-and-limited-liability-partnership

you may find this link helpful
http://ismyportfolioscrewed.co.uk/

Reply to the comment left by “Ed Duncan” at “29/09/2015 – 07:58“:

The crucial point you are missing Ed is the transfer of assets from the individual to the company without triggering CGT and stamp duty or having to refinance due to change of ownership.

I appreciate what you are trying to achieve and for those who can afford the professional fees (upwards of £50,000) then an end goal of being taxed as a company is achievable without incurring additional tax costs.

See >>> https://www.property118.com/tax-efficient-incorporation-landlords/77519/
.

Reply to the comment left by “Mark Alexander” at “29/09/2015 – 08:49“:

Hi Mark
the asset title will not require to be altered so this saves legal costs and the lender may not require to be notified . The debt/ mortgage remains same.
you as a sole trader set up a new partnership with Limited company (https://www.gov.uk/set-up-and-run-limited-partnership)

the partnership agreement states that the proportion of income say 50% is taken into the company along with the same 50% proportionment of interest , this reduces the affect of interest taxed at full rate but deduction limited at 20%
what do you think?

From what my accountant has said so far, this type of set up would be seen as aggressive tax avoidance and HMRC will look to shut it down. The only way I’m going to look at any creative tax avoidance schemes is if it has been signed off my HMRC and there has been a test case in the courts – there is no way I’m sticking my head above the parapet unless it has been trialled and scrutinised. There are far too many risks as it is with clause 24, interest rates, welfare reform and extra legislation, without fast tracking myself to bankruptcy via an HMRC tax demand that I cant pay.

Reply to the comment left by “Manchester Landlord” at “29/09/2015 – 09:16“:

http://www.rpc.co.uk/index.php?option=com_easyblog&view=entry&id=375&Itemid=129

The recent decision of the First-tier Tax Tribunal (‘FTT’) in James Albert McLaughlin v The Commissioners for HM Revenue and Customs1, is a timely reminder that taxpayers are perfectly entitled to organise their affairs so that the minimum amount of tax is paid.

Reply to the comment left by “Saeef Khan” at “28/09/2015 – 21:24“:

> if these numpties come in we ourselves will end up becoming homeless let alone
> our tenants.

I am seriously considering transferring my mail order company and all of my personal assets into an offshore company and a trust structure – if Clause 24 bankrupts me personally, I will still have access to them, which my creditors (yes, I am looking at you, HMRC) will not.