The ULTIMATE Guide To Landlord Tax Planning

The ULTIMATE Guide To Landlord Tax Planning

13:35 PM, 23rd April 2021, About 5 months ago

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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/

Book a Tax Planning Consultation

  • Please provide an overview of your circumstances and what you are looking to achieve.
  • Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).