Simon Lever

Registered with Property118.com
Monday 15th June 2015

Trading Status
Joint

Insures properties through a broker recommended by Property118
No


Latest Comments

Total Number of Property118 Comments: 110

Simon Lever

15:37 PM, 2nd March 2019
About 2 weeks ago

£100,000 slander payout to Landlord by Doncaster Council

If you are considering a similar prosecution why not take proceedings against the individual and the council at the same time.
If council officials find themselves the subject of court proceedings along with their employers they may take a more measured view in making comments.... Read More

Simon Lever

15:50 PM, 23rd February 2019
About 3 weeks ago

Would a multiyear Incorporation avoid CGT?

Initial advice is run it past your own accountant for his/her views. That is what they are there for.

If you transfer a proportion of the property to your wife before you sell it directly the CGT would be maximum of £21,560 at current rates, less if one of you is a basic rate taxpayer.

For the various reliefs if the property was a principal private residence (PPR) then the last 18 months of ownership plus any period of PPR before the last 18 months would reduce the CGT by a proportion of PPR + 18 months over total period of ownership. Also lettings relief of up to £40,000 per taxpayer would be available. There is a formula for how to calculate lettings relief which is the lower of 3 different figures. However making a property a PPR is not as straight forward as it may seem and professional advice should be taken on this.

Also need to consider removing tenants if it is already let. Is this practicable?

Whilst the property is being transferred year by year to the limited company rent would have to be received by the limited company in proportion to its ownership unless the limited company and Mrs & Mrs Jones are in LLP in which case the rents can be paid in any proportion that is agreed by the partners.

In 5 years time the value of the property should have increased so the capital gain on which the company pays tax would be higher although the tax rate will most likely be at only 17%.

If the overall aim is to sell the property with as little tax to pay as possible the scheme may work. However it seems a convoluted method to save £11,560 (£21,560 - £10,000) plus any additional CGT payable by the company in 5 years time.

This is a case where you “have to do the math” and see if the saving is worthwhile. Also you would have to consider if you could make more money by taking the total proceeds now and investing them elsewhere for the 5 years.

As I said at the start – take professional advice (which this is not!)... Read More

Simon Lever

16:22 PM, 1st December 2018
About 4 months ago

National Landlords Alliance on BBC Radio 4 You and Yours

There are only 2 ways to get better at something:
Keep doing it until you learn and eventually get it right, or
Get some training so that you can learn to get better so that you do not make mistakes.

Additionally you need to learn from your mistakes.

Larry has obviously got himself noticed as he has managed to get an online interview. Hopefully there will be more with opportunities to get his message over.

My advice, for what is worth, is that Larry, and anyone else from his organisation who will be interviewed, should get some detailed media training to help them understand how the interviewers work and how to get their point across clearly.

Not a criticism just practical advice on how to level the playing field.... Read More

Simon Lever

11:30 AM, 25th August 2018
About 7 months ago

Taxi company or sole trader?

If you would be looking to use the taxi business losses against any property profits in the limited company I doubt that HMRC will allow the offset of the losses.
In general the losses can only be used to reduce profits from the same trade or profession which is clearly not the case in this instance.
Check with your accountant before making any decision.... Read More

Simon Lever

9:11 AM, 21st July 2018
About 8 months ago

Setting up a property management company?

A managment company could work if you stucture things correctly.
If you set up a company to only manage your own properties then HMRC would try to use GAAR to say that it is merely a scheme set up with one of the main purposes being to reduce tax.
However if you make your kids shareholders then they can receive some dividends tax free.
If you know other landlords then you can offer them the service and if you can find other properties not owned by you then HMRC cannot say that it is not a legimitate business.
You would need to advertise your services as well to show that you are running a business. Other badges of trade such as insurance would also be necessary.
From your post it would seem that the main reason for setting up the company is to avoid tax so you need to find as many ways as possible to make it into a legimitate business for HMRC not to get too interested.... Read More