haf ali

Registered with Property118.com
Monday 15th December 2014


Latest Comments

Total Number of Property118 Comments: 7

haf ali

16:19 PM, 2nd October 2015
About 4 years ago

Using a Ltd Co for Buying New Property and managing existing ones

I have just setup a limited company and about to transfer one of my properties to it (no CGT) but have a question that I am struggling to find an answer to. I have no mortgage on the property but once its in the company then i want to refinance it to release some cash for my next purchase. I am not sure if i can refinance immediately as i think you need 6 months trading before anyone will refinance - even with a personal guarantee.
Is there a way around this?... Read More

haf ali

21:10 PM, 6th September 2015
About 4 years ago

Going down the limited company route with self employed friend

Well, after speaking to the accountant I am the proud Director of a limited company.
Next action is to move my 2 properties into it;
The first has gone up in value around 50k as i bought at auction and added value via refurb and extension. I plan to use my CGT, past losses and refurb/extension costs to ensure i pay no CGT
The second, I have only just bought so has no increase in value and I will add value once its in the limited company.
I have enough funds to refurb the second property and once thats complete I will look to refinance one or both for the next project
My spouse is a director+shareholder and I don't intend to withdraw any profits anytime soon.
All good so far and I am glad I have done it in the early stages of my property development business... Read More

haf ali

14:54 PM, 1st September 2015
About 4 years ago

Going down the limited company route with self employed friend

Thanks to everyone (especially simon) for the great feedback.
I am seeing my accountant tomorrow to nail things down and get him to create the company with his 'registered' address etc. A few more comments;

1. It looks like I may be better off making my wife a shareholder and director to justify paying her a decent wage under NI limit (c£8k). Plus it means we can both extract dividends to the 0% tax limit. Will get accountant to confirm

2. I get the points about further finance and will look into that asone of my early actions - though I think it will be end of the year before I need finance for next property.

3. The guy who will manage and refurb my properties is registered as self employed and is not exclusive to me so hopefully all ok on that front

3. I like the idea of the startup funding being a loan from my wife that the company could pay interest on. As I understand the company would have to pay hmrc 20% tax against that interest so it would be no different to corporation tax but it means the money could come out without incurring further taxes.

4. I also looked at the option of me remortaging my primary residence to free up cash for future purchases and then loaning or even giving the money to the company - given i would get a better rate of interest from the banks. But again I couldn't figure out the advantage and how this would be impacred by 2015 budget etc
This whole area of finance is a bit messy so will have to ask the accountant

5. I do understand that my company will not be eligible for various 'reliefs' such as entrepreneurs relief etc

I will post back once i have had the meeting with the accountant... Read More

haf ali

8:48 AM, 28th August 2015
About 4 years ago

My Landlord Tax Strategy

Mark,
Given the budget announcements around HRT then would you still stand by your view that ltd company is not the way to go.. I am just starting out (with a large-ish cashpile) and having spoken to accountants etc I am being adviced that for my situation ltd company is the only way to go.. obviously my situation won't be the same as everyone elses but anyone in HRT, without a established portfolio, without urgently needing high levels of finance and more interested in growing the business than taking profits - ltd is the better option.... Read More

haf ali

12:10 PM, 17th July 2015
About 4 years ago

Is this a legit way to minimise tax?

point 1 - didn't realise that they were different so thanks for the info
point 2 - i am happy with my arrangement to give away the income
point 3 - i am comfortable paying the mortgage and giving away the income

Thanks for the clarification and I will do some more looking into point 1... Read More