Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Kathy Evans” at “22/07/2016 – 22:51“:

It isn’t IR35. It’s along the same lines.

I don’t see a problem with a limited company taking out an option contract for a period of time taking over the mortgage and the collecting the rent and therefore taking over the tax liabilities. The individual has then signed over the property, therefore has no tax to pay as they are not receiving any income from them. We have ran this by a tax barrister who has okayed it I really think it is a winner and easy to do. We have done many option agreements all done through solicitors

Reply to the comment left by “NW Landlord” at “23/07/2016 – 09:41“:

Let us for a yoctosecond or two give uncle George the benefit of the doubt and surmise that his intention was not to raise more revenue or destroy the PRS but to encourage landlords to put all their property into Limited Companies in order that the legitimate tax could be more easily collected. Without actually saying so he could have deliberately left a loophole so that astute lawyers and accountants could save their client’s skins, in which case your scheme would be a legitimate, okay semi legitimate, workaround and would work nicely.

There would be much, much easier ways for George to obtain this objective.

Have you or your advisers checked this scheme with HMRC?

Not sure whether he has called them but he is an expert on tax law which is good enough for me what’s the alternative ? There isn’t one I have spoke to a lot of different finance experts and haven’t had one come back negative. It’s up to you as individuals but this is the situation we have been presented with adapt to survive it is basically a way of incorporating your business which many landlords are doing in different guises.

I tend to think there maybe something in ur post aswell maybe he wants to simplify the industry to make it easier to collect tax as there are many landlords who fly under the radar

If you want to talk direct David message me and I will give u my phone number

Reply to the comment left by “NW Landlord” at “23/07/2016 – 10:46“:

Please contact me through the disposable address [email protected]

Hi David I have just sent it and it has bounced back ?

I claim a senior moment! It should be [email protected].

Sent

This is a very simple structure. Disarmingly simple.

It is certainly not a complex ‘structure’ of connivance to avoid tax.

-Has GAAR ever really been invoked for anything remotely similar?

-Was GO’s plan to harass/persecute a section of society by sudden denial of established democratic norms of a business environment open to everyone else? I’m sure he would not want to have suggested the partial application of law according to an arbitrary discrimination?

-It’s a business decision to whom one lets their properties. I favour this structure as it offers greater protection against personal liability. Any tenant disputes will be with the limited company, not me personally – this is a sensible business decision. It is less stressful for me and my family. Additionally, the company can take out a long let to give me peace of mind on void periods.

We live in a mature liberal democracy with rule of law. I want to run a business, pay taxes and manage the business in a way that is best for the service I am providing and my management skillset.

The structure I am choosing is evidently a structure shaped by and consistent with sound business planning, tax implications aside.

How can there be a problem with this?

Streamlining your business into a limited company structure ? Nothing at all it’s a no brainer the way I see it good post by the way