Katy Ann

Registered with Property118.com
Sunday 8th November 2020

Latest Comments

Total Number of Property118 Comments: 8

Katy Ann

12:52 PM, 2nd June 2021, About 2 weeks ago

Accidental landlord - Can I do the annual accounting myself?

Definitely keep the business activity and the rental activity separate in your declarations to HMRC. That’s because that’s what the legislation requires you to do, rather than because of how the tax return is set out. Specifically, if you make any losses on one activity you can’t deduct those losses from profits on the other. Personally I’d recommend you do use an accountant if you’re not familiar with tax law (which you don’t seem to be). The additional fairly modest cost should be worth it in terms of peace of mind.... Read More

Katy Ann

13:28 PM, 23rd April 2021, About 2 months ago

Buy to Let in Scotland for south of the border newbie?

We did exactly this for my daughter's final year at uni. We were the landlords, not our daughter, and overall it’s been a really good investment. We did some work on the property initially so that it was a comfortable home/study environment and that has paid dividends by making it easy to find and keep replacement student tenants ever since - it’s been several years now since daughter and friends moved out. We use a good letting agent when we need to re-let but otherwise manage it ourselves. Having had the benefit of tame family guinea pigs to practice on, we think we've got pretty good at knowing what works for the student market.

I’d suggest doing as much research as you can into the student market in your area so you can work out a realistic forecast of rental income versus costs. Be aware that some mortgage lenders will often not give a BTL mortgage where a relative will be in the property so you may need to consider a normal residential mortgage which you can convert later.

Good luck... Read More

Katy Ann

20:13 PM, 8th April 2021, About 2 months ago

Stuck with a student pod and no management company?

It’s difficult to answer this without understanding more about your specific property, the terms of the leasehold interest you hold, and the terms of your contractual arrangement with the management company. Generally speaking, as landlord you are entitled to the rental income but you're also legally liable for maintaining the property in a habitable state (ie paying for maintenance costs). You can of course engage someone else to look after the tenancies and to undertake maintenance on your behalf, but those things are still your responsibility. It sounds as though you engaged the maintenance company to find tenants for you and to collect rents on your behalf, but that as part of that arrangement they were supposed to use the rental receipts to pay for maintenance costs and then pass over to you only the net rents. It’s not clear whether they were also expected to pay the service charges and ground rent out of the rental income - it sounds as though the arrears go back pre Covid? Possibly worth taking legal advice about whether they've breached the terms of their contract with you?
As to getting it let again, that should be possible as students are starting to go back to uni. My own student house has been occupied throughout as my tenants chose to stay there, and my student son (at a different uni, not in my student house) has also been back and forth between home and his student flat. So you've been quite unlucky if yours has been empty since last April. Worth speaking to a different letting agent. Good luck.... Read More

Katy Ann

17:20 PM, 5th March 2021, About 3 months ago

Telegraph requesting landlord feedback on Budget corporation tax increases

The Telegraph are in the habit of finding one or two people adversely affected by some Government announcement, and posting a photo of them with glum expressions alongside an article explaining why they feel terribly hard done by. Telegraph readers then pitch in with acerbic comments about how the people are either not really very hard done by at all, or else have brought their problems on themselves. I’ve never understood why anyone would want to expose themselves to that, frankly.... Read More

Katy Ann

19:48 PM, 1st February 2021, About 4 months ago

Residential to Ltd co for capital raising?

SDLT payable by company if it buys the property from you.
Possible IHT gift with reservation of benefit issues if you gift the property to the company.
Possible benefit in kind income tax charge on you as director if you don’t pay the company a commercial rent for your occupation.
Possible Annual Tax on Enveloped Dwellings tax charge on company, depending on value of the property.
No CapitalGains tax principal private residence relief available for the company if you should ever want to sell the house.
When you say you’re happy to gift or sell the house to your company, is that based on you having considered all of the above and decided that none of it's a problem for you?... Read More