So many buy to let borrowers get frustrated because BM Solutions will only allow them to have 3 buy to let mortgages. However, now they have removed their minimum income requirements, this criteria is very easy to overcome for many borrowers.
The answer is to own the properties in your individual names. That way a couple can have three mortgages with BM Solutions each. Hey presto, that’s six mortgages with BM Solutions.
The are also many other advantages of owning the properties in individual as opposed to joint names. For details of this see my Landlord Tax Strategy.
If you would like to discuss further borrowing strategies why not have a chat with my business Partner, Neil Patterson. His contact details are firstname.lastname@example.org or you can call him on 01603 489 118.
One of our readers has sent in the following email (dark blue text below) and is looking for ideas that other landlords have used to minimise tax by spreading rental profits between spouses.
Mark Alexander has shared a few thoughts but would like to point out that he’s not a qualified tax adviser. Therefore, we have also included a contact form for you to get in touch with the accountants Mark uses. He’s also invited their landlord tax expert, Neil Barlow, to comment. Continue reading Can landlords spread rental profits between spouses and minimise tax?
We have received four questions from one of our readers as the final date for submission on-line of 2011-12 tax return looms asking:
1. Are NIC’s payable on rental profits accrued by an individual, i.e not a company? I believe this is classed as unearned income and does not attract NIC’s liability.
2. Can I employ my wife to carry out the administration work for my properties? These are owned solely by me as an individual, not a business. She is a housewife.
3. If the answer to Q2. Is yes. Can I pay her up to her nil rate allowance, thereby reducing my own tax liability by that amount?
4. If I opt to do this now on my 2011-12 tax return, is this likely to incur a penalty for not registering this at the beginning of the tax year, and how much is the penalty likely to be? Continue reading Tax return looms – Readers Question
Here at Property118 we constantly share ideas to help UK Landlords to reduce your costs and maximise your returns. These are our austerity tips for 2013, each section is linked to the relevant page of our website where you can find out more and make contact with the providers of products and services we currently recommend. Links are in slightly larger bold text, blue in colour and underlined. Continue reading UK Landlords Austerity Tips for 2013
Northern Rock BuytoLet who are part of Virgin Money have confirmed they will consider “Day One” remortgages otherwise known as “Back-to-Back” and Regulated BuytoLets for the use of close family members.
This is a very niche area for Lenders with only Mortgage Trust as the other company able to consider remortgages inside six months of the purchase date when significant works have been carried out and BM Solutions who will consider Regulated BuytoLet applications. Continue reading Northern Rock BuytoLet Useful Criteria
It is quite rare for me to share taxation strategies here in full on my blog, especially taxation strategies for capital raising purposes which I’ve not used personally yet (but intend to). However, following an email from a reader called Mike today I will make an exception on this occasion. I love to share my strategies bit by bit but I often miss out some key elements, either to encourage further conversation or to provide enough intrigue for my readers to want/need to contact me personally. I explain why I do that here.
Mike wrote to me as he is currently going through a tax investigation and from his email it is quite aparent that he has a decent understanding of landlord taxation. Mike’s email raised questions regarding an article I recently published about “Partial Exit Strategies for landlords“, and in particular the taxation strategies for capital raising as referred to in that particular article. Continue reading Taxation strategies for capital raising on a BuyToLet basis for retirement
Following my article regarding Landlord Tax Strategies, I’ve woken up this morning to a very full inbox. I will do my very best to respond to everybody but please bear with me. Continue reading Buy to let Exit Strategies – Readers Questions
Read the headlines from the past week featuring the latest columns and commentary from the buy to let and housing industry, as well as the latest news. Continue reading Property118 Landlords Newsletter – Issue 117
Landlords who have failed to pay tax on the sale or buy to let rents face extra scrutiny from a new HM Revenue & Customs tax force.
A team of investigators covering East Anglia, London, Leeds, York, Leicester, Nottingham, Lincoln, Durham and Sunderland is seeking to recover more than £17 million from tax dodgers.
They will pinpoint around 300 tax cheats to examine their records and carry out other investigations. Continue reading HMRC targets landlord tax cheats in property crack down
This week’s edition features a round up of all the week’s articles. Neil runs through how to assess a mortgage product based purely on price and two 80% buy to let deals. Mary reacts to human rights, Ally has interior tips for landlords and tennants, Ben attempts to unite the PRS and there is lots of hot news from around the country including the Chancellor himself.
Continue reading Property118 Landlord Newsletter – Issue 110