steve watt

Registered with Property118.com
Monday 21st November 2016


Latest Comments

Total Number of Property118 Comments: 15

steve watt

21:31 PM, 1st November 2020, About 8 months ago

5.8% annual house price growth at 5 year high

3% knocked off SDLT until 31 March 2021, base rate reduced to 0.1%, pent up demand - these factors may have helped. Long-term direction = downward, in my view.... Read More

steve watt

9:00 AM, 13th October 2018, About 3 years ago

Swiss Franc mortgage losses - Double tax whammy?

Reply to the comment left by steve watt at 13/10/2018 - 08:44
My comment above was a draft but it ended up getting posted.
Although the property and the mortgage are linked economically, for the purposes of CGT the mortgage is ignored. This is because the mortgage is not an asset and not subject to any CGT rules. There could be a capital gain or loss on the mortgage, but because this is a liability it is not subject to or allowable for tax.... Read More

steve watt

8:44 AM, 13th October 2018, About 3 years ago

Swiss Franc mortgage losses - Double tax whammy?

To compute the capital gain for tax purposes (in brief) you take the sterling equivalent of the proceeds at the exchange rate at the date of sale less the sterling equivalent of the cost of the asset at the exchange rate at the time of acquisition. If all this was in sterling then there is no issue here.
Since the mortgage is part of the asset you do the same in converting the mortgage at the two dates taking historical rates.
This is the rule and it can produce perverse results: If you have an asset in a foreign currency and that foreign currency increases massively against sterling the offsettable cost for CGT purposes is pegged (you can't take the original cost at today's rate to deduct from the proceeds). However if you have a liability, as in the case here, the rule is to your advantage.
These funny rules arise because you cannot submit tax returns in foreign currencies.
I'm a CTA(fellow) in practice, and a landlord.... Read More

steve watt

12:35 PM, 21st April 2018, About 3 years ago

Why Rents Will Rise In 2017

As of April 2018, Folkestone BTL market quite healthy, easier to find good tenants, rents holding up well, not many tenants leaving.... Read More

steve watt

16:29 PM, 17th February 2018, About 3 years ago

Guarantor but left with Council Tax!

Reply to the comment left by Chris Jordan at 16/02/2018 - 12:04
I'm interested in the one month council tax exemption you refer to. I can't find any reference to this on the internet.... Read More