The ULTIMATE Guide To Landlord Tax Planning

by Property118.com News Team

13:35 PM, 23rd April 2021
About 3 weeks ago

The ULTIMATE Guide To Landlord Tax Planning

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The ULTIMATE Guide To Landlord Tax Planning

Mark Alexander’s latest video interview on Ranjan Bhattararya’s “Succeed IN Property” YouTube channel has just been released and you can watch it right here.

If you’ve watched one of their previous video’s, chances are that you will have watched them all.

They really are quite addictive, probably because the content is so incredibly insightful, well researched and well presented.

This latest video is essentially a promo for the new eBook pictured right. It’s a free download containing 25 pages of high quality content including the following:

  1. Case study clearly highlighting the unfairness of the tax system for private landlords
  2. Case study showing how one landlord reduced his tax bill by 85% using an LLP structure
  3. Links to HMRC manuals, legislation and other video’s explaining extra statutory concessions and reliefs to facilitate business ownership transitions
  4. The different types of Partnership and the pros and cons of each
  5. Transitional reliefs from individual ownership to Partnership and Partnership to Limited Company
  6. More case studies on business continuity, legacy planning and tax strategies for Limited Company landlords

https://ebook.property118.com/

Introduction to landlord tax planning

Nobody in their right mind wants to pay more tax than they have to. However, most property investors simply don’t know that they can structure their tax affairs to reduce how much tax they
legally pay, let alone how to go about doing it. Very few are aware of the existence of the many forms of tax relief or alternative ownership structures available to help reduce their tax burden.

In most cases, when property investors think of tax planning, they tend to focus on Income Tax efficiency. Why? Because it’s ever-present and often we can make changes that bring about an
immediate benefit. However, the largest tax bill that most property investors fear – and quite rightly – is the tax that they pay when they sell property (Capital Gains Tax “CGT”) and when they die (Inheritance Tax “IHT”).

Another common mistake is to focus on the cheapest form of financing, especially in the early stages of business, which may prevent you from seeing the bigger picture.

When Capital Gains Tax and Stamp Duty were first introduced, the Government recognised that artificial taxation during critical phases of growth could stifle businesses and the economy.
Accordingly, extra statutory concessions and reliefs were introduced to ensure that transitioning from one business structure to another (sole owner to Partnership for example) would not suffer the same tax consequences as sale of a business to an unconnected party. Similar reliefs apply when a Partnership transitions into a corporate structure, i.e. limited company.

With the correct planning, it may well be possible to utilise legislation to structure your property rental business without any requirements to refinance or to pay Capital Gains Tax and Stamp Duty
(or the equivalents in Scotland and Wales).

The business structures and transitional reliefs recommended by Property118 and Cotswold Barristers are not ‘loopholes’ or ‘tax dodges’ – they are perfectly legal structures and reliefs that your
average accountant might never consider bringing to your attention, even though they are very commonly used by other types of business. We specialise in bringing the ‘big business’ thinking that
often costs a small fortune to the ‘small business’ property investor at an affordable price.

Property118 in Association with Cotswold Barristers will help you to understand what is achievable in law and to assist you with legal matters associated with implementation of our recommended
strategies. We work with you and alongside your accountants to achieve these objectives. It is important that you involve your accountant at the early stages of discussions regarding a new
business structure, because they will need to understand it in order to continue to deal with the accounting and compliance of your business following implementation.

For the avoidance of any doubt, neither Property118 nor Cotswold Barristers recommend ‘tax avoidance schemes’ that seek to abuse the tax system, or could fall foul of HMRC’s General Anti
Abuse Rules – ‘GAAR legislation’. There are plenty of perfectly legitimate forms of tax relief and tried and trusted methods to structure your property rental business to optimise both your tax and
commercial positioning and it is those structures and reliefs that we stick to recommending.

Ownership structures and re-structuring

When Capital Gains Tax and Stamp Duty were first introduced, the Government recognised that artificial taxation during critical phases of growth could stifle businesses and the economy.
Accordingly, extra statutory concessions and reliefs were introduced to ensure that transitioning from one business structure to another (sole owner to Partnership for example) would not suffer the same tax consequences as sale of a business to an unconnected party. Similar reliefs apply when a Partnership transitions into a corporate structure, i.e. limited company.
With the correct planning, it may well be possible to utilise legislation to structure your property rental business without any requirements to refinance or to pay Capital Gains Tax and Stamp Duty
(or the equivalents in Scotland and Wales).

The business structures and transitional reliefs recommended by Property118 and Cotswold Barristers are not ‘loopholes’ or ‘tax dodges’ – they are perfectly legal structures and reliefs that your
average accountant might never consider bringing to your attention, even though they are very commonly used by other types of business. We specialise in bringing the ‘big business’ thinking that
often costs a small fortune to the ‘small business’ property investor at an affordable price.

Property118 in Association with Cotswold Barristers will help you to understand what is achievable in law and to assist you with legal matters associated with implementation of our recommended
strategies. We work with you and alongside your accountants to achieve these objectives. It is important that you involve your accountant at the early stages of discussions regarding a new
business structure, because they will need to understand it in order to continue to deal with the accounting and compliance of your business following implementation.

For the avoidance of any doubt, neither Property118 nor Cotswold Barristers recommend ‘tax avoidance schemes’ that seek to abuse the tax system, or could fall foul of HMRC’s General Anti
Abuse Rules – ‘GAAR legislation’. There are plenty of perfectly legitimate forms of tax relief and tried and trusted methods to structure your property rental business to optimise both your tax and
commercial positioning and it is those structures and reliefs that we stick to recommending.

https://ebook.property118.com/

Form To Book A Tax Planning Consultation

Consultations include Fact Find, expert analysis and a recorded video conference with your Property118 Consultant and your Accountant. Thereafter, our recommendations will be reviewed by Cotswold Barristers (at no extra charge). If they agree, and if you instruct them to complete the legal work to implement our suggestions, Cotswold Barristers will adopt our recommendations as their own professional advice, for which they carry professional indemnity insurance of £10,000,000 per claim. All consultations are confidential and you will be provided with a copy of the recording of the video conference. We GUARANTEE total satisfaction or a full refund.
  • Book a Tax Planning Consultation

  • Please provide an overview of your circumstances and what you are looking to achieve.

Revised Right to Rent requirments from 21st June

Smart Property Company Structures

Smart Property Company Structures

Landlord Incorporation Specialists

Landlord Incorporation Specialists

Tax Consultation Testimonials

Tax Consultation Testimonials

Incorporation without Refinancing

Incorporation without Refinancing

Incorporation relief and latent gains explained

Incorporation relief and latent gains explained

Landlord Incorporation Strategies – Update for 2020

Landlord Incorporation Strategies – Update for 2020

HMRC Investigation into £9million Property118 ‘Incorporation Relief’ Claim

HMRC Investigation into £9million Property118 ‘Incorporation Relief’ Claim

Capital Account Restructure – Case Study

Capital Account Restructure – Case Study

What Does “Washing Out CGT On Incorporation” Actually Mean?

What Does “Washing Out CGT On Incorporation” Actually Mean?

Stamp Duty when transferring the ‘whole business’ of a Partnership into a Limited Company

Stamp Duty when transferring the ‘whole business’ of a Partnership into a Limited Company

Incorporation Viability Analysis for UK Landlords

Incorporation Viability Analysis for UK Landlords

Inheritance tax and legacy planning for property company owners

Inheritance tax and legacy planning for property company owners

HMRC Internal Manuals ‘Landlord Incorporation’

HMRC Internal Manuals ‘Landlord Incorporation’

The optimal ownership structure for UK landlords

The optimal ownership structure for UK landlords

Guide for landlords on forming an LLP for property investment

Guide for landlords on forming an LLP for property investment

LLP structure reduces landlords tax bill by 85% – CASE STUDY

LLP structure reduces landlords tax bill by 85% – CASE STUDY

Partnership taxation and associated rules

Partnership taxation and associated rules

Property valuations for tax planning purposes cost just £19.95 each

Property valuations for tax planning purposes cost just £19.95 each

Hybrid Tax Structure – Landlords BEWARE!

Hybrid Tax Structure – Landlords BEWARE!

Book A Consultation

Book A Consultation

Using a property investment LLP for school fees planning purposes

Using a property investment LLP for school fees planning purposes

LBTT for sole owner landlord incorporation in Scotland

LBTT for sole owner landlord incorporation in Scotland

Stamp Duty relief on properties split into multiple dwellings

Stamp Duty relief on properties split into multiple dwellings

Expat Landlords Tax Planning Opportunity

Expat Landlords Tax Planning Opportunity

Open A Business Bank Account In Minutes

Open A Business Bank Account In Minutes

Four Property Investment Structures – Video Interview

Four Property Investment Structures – Video Interview

Landlord incorporation and tax planning presentation

Landlord incorporation and tax planning presentation

Become a Property118 Affiliate

Become a Property118 Affiliate

Tax Free Interest On Your Directors Loan

Tax Free Interest On Your Directors Loan