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Latest Comments

Total Number of Property118 Comments: 38


12:38 PM, 20th October 2021, About a month ago

Overseas Lettings - Tax Implications Following Brexit?

Hi Malcolm

If you receive income from overseas property you will need to prepare the Foreign Property pages of your UK Tax Return. This separates the income and expenses from UK let property, UK income, etc and overseas let property, meaning that you can't offset one against the other.

Do you use a Gestoria to prepare your Spanish Tax Return? It might be worth engaging the services of a Spanish Gestoria to help you.... Read More


9:45 AM, 8th October 2021, About 2 months ago

Anything else we can use so that my friend can feel more secure?

Hi David

You and your friend could lodge an RX1 restriction at HM Land Registry, which I believe would not require the mortgage lender's permission, but I advise that you check that with a solicitor.... Read More


12:04 PM, 6th October 2021, About 2 months ago

Cash purchase, renovate then refinance with Ltd co mortgage?

Hi Graham

You have made some good observations.

However, I disagree that Nick "will pay CGT on the disposal and the company will pay SDLT on the purchase". These taxes may become due, or they may not, depending on the individual circumstances.

That's why only bespoke and individual advice can be relied upon. There is no 'one size fits all' solution 🙂

I recommend that Nick books a 'satisfaction guaranteed' Property118 Tax Consultation to receive bespoke advice that relates to his specific circumstances >> Read More


12:01 PM, 5th October 2021, About 2 months ago

Cash purchase, renovate then refinance with Ltd co mortgage?

Hi Nick

If you are already an established Partnership, then it makes sense to consider incorporating your partnership into a limited company. This carries many benefits, which includes the ability to deduct finance costs as a legitimate tax deductible expense. This may not be a problem for you right now, as you say you are “just under the threshold for section 24”, but as you buy more property this is likely to become a problem for you.

Do you have children, because the biggest reason to incorporate into a Smart Company Structure is to shield the future capital growth in property values from Inheritance Tax. A partnership won’t help you in this respect.

I recommend that you book a Property118 Tax Consultation so that we can look at your specific circumstances and deliver a solution that ticks all the boxes for you.... Read More


12:39 PM, 29th September 2021, About 2 months ago

Setting up a Mixed Partnership Structure?

Reply to the comment left by David at 29/09/2021 - 11:33
Whilst there is nothing wrong 'per se' with a mixed member partnership, David is correct that they are very much on HMRC's 'anti-avoidance' radar. The reason for this is that they have historically been - and continue to be - abused to gain an artificial tax advantage.

I'm afraid to say that what James appears to be proposing (i.e. "The tax savings realised through allocating profits to the limited company partner...) sounds very much like tax avoidance. Apportionment of profits from the human Member(s) of an LLP to the Corporate Member(s) of an LLP can ONLY be in proportion to their capital accounts (i.e. the capital they introduced into the LLP). Therefore, if the human Members introduce all the capital in the form of property, none of the 'profits from property rental' can be apportioned to the Corporate Member.

Please, don't take my word for it! Just Google "disproportionate allocation of profits in mixed member partnerships" and read the top two articles by HMRC.

Put simply, a Mixed Member Partnership is almost NEVER the answer to a landlord's problems, which is why we so rarely recommend their use. There are far better business structures available to us and it is those that, in the main, we stick to recommending.

It will only cost you £400 for a Property118 Tax Consultation and if you think the advice you receive is useless, just ask for your money back. You have absolutely nothing to lost, but £Millions to gain!... Read More