Simon Lever

Registered with
Monday 15th June 2015

Trading Status

Insures properties through a broker recommended by Property118

Latest Comments

Total Number of Property118 Comments: 117

Simon Lever

12:08 PM, 2nd May 2020
About 3 months ago

Setting up a Management Company make sense?

It depends on individual circumstances.

For example company could be set up to manage the properties of a single property owner, say husband. Directors of the company could be husband and wife and shareholders husband wife and 18year old child about to go to university.

If wife has no other income then she could earn salary of, say, £8,700 per annum to get pension credits and pay no NI. If profits and depending on shareholding ratios up to £6,000 in dividends could be paid to 3 shareholders with no tax.

This could therefore shelter nearly £15,000 of income from tax at 40% - £6,000 – which would effectively pay for a year’s accommodation at university, assuming of course that the child did not use one of the properties in the portfolio for accommodation!

It does all depend on individual circumstances and crunching the numbers.... Read More

Simon Lever

10:58 AM, 18th December 2019
About 8 months ago

ICO demand - is it a scam?

Reply to the comment left by Luke P at 17/12/2019 - 13:23
So you used to be registered and then decided that you did not need to be.
Have you told them? If not how do you expect them to know that you no longer need to be registered.
Tell them the situation and things will go away. Don't tell them, go to court and you will very probably end up with the fine and possibly costs as well.
As to their powers, I think that you will find that they are extensive and powerful.... Read More

Simon Lever

17:08 PM, 15th December 2019
About 8 months ago

ICO demand - is it a scam?

If you run a business and hold data you have to register - simple.
This is just the ICO doing their job.
Just wait until non corporate landlords have to submit data quarterly to HMRC under MTD. Imagine the howls then.
However if you do not hold data you don't have to register, follow the link in the letter to tell them you do not have to.
If you use an agent and just receive net rents and they did the referencing for you then you probably don't have to register.
However if you are not sure then call them, they have given you the number!
This is all part of running a business, which landlords keep telling everyone else that is what they do.... Read More

Simon Lever

10:38 AM, 30th June 2019
About A year ago

If I move into my rental property will I pay future CGT?

Please take detailed advice from a qualified accountant. Believe it or not anyone can call themselves an accountant with no professional qualifications or insurance at all.

The period of time that the property is occupied as a principal private residence (PPR) compared to the total period of ownership is exempt from capital gains tax (CGT). The final period of ownership, currently 18 months, is also exempt. From April 2020 this period reduces to 9 months.

Also you MAY be able to claim lettings relief of potentially up to £40,000 as well.

Whilst this forum can give general advice it is no substitute for taking professional advice. The cost is worth it in the long run.... Read More

Simon Lever

10:59 AM, 22nd June 2019
About A year ago

Splitting rental income options with spouse?

First off whatever you are going to do, take professional advice.
You could consider forming a partnership with just you and your wife, transfer 1-5% of ownership to her. In a partnership the split of profits can be any ratio that the partners decide on so although the underlying ownership is mostly with you the split of profits can be 95%:5% in favour of your wife.
You would need to set up a separate business with its own UTR number in order for the partnership rules to kick in.
If you consider this to be too risky then you could add another partner to the partnership which would break the husband:wife 50:50 situation.
If you formed a limited company owned by your wife and you, the company could become a partner in the partnership and receive some of the profits each year. Tax at 20%, no NI (there might be some on you personally if the partnership is seen as a business), full relief for interest, and profits could be allocated as desired. Dividends from company to you and wife, to limit of £2,000 per annum, are taxed at 0% (subject to other dividend income).
If you have kids then they could become shareholders in the company, use alphabet shares and varying rights to maximise IHT reliefs.
Future property purchases could be through company in future.
However this is some complicated planning and I would only suggest it if you plan to create a reasonable sized property portfolio.
Don’t forget – take professional advice before doing anything.... Read More