Property Tax Planning for Buy-To-Let Investors
If you are worried about the changes in property tax legislation, this video will help you. It will show you how we can reduce the amount of tax that has to be paid through our proposed Property Tax Planning. This will save thousands of pounds in tax and also help you build your property portfolio at a time when most property landlords are thinking of selling due to the unfavourable tax environment.
Why Tax Expert?
Ilyas, who is a buy-to-let landlord himself, has extensive knowledge of property investment and property tax legislation. He and his team have advised a number of clients on how to mitigate their current tax liability in the current climate and on proposed legislative changes.
Knowledge and expertise
Conducted property tax seminars and saved thousands of tax for a number of clients
Gain extensive advice
You gain extensive advice on the most tax efficient way to manage your properties whether you have a small or large portfolio on a regular basis
Property Tax Planning
Provide analysis on the best method to purchase properties including the tax consequences of each method and how alternative forms of ownership can be more tax efficient
Our 5 Strategies
Designed to accommodate your current property tax situation and future needs
2 Main Issues
Additional 3% Stamp Duty on Buy-To-Let
Reduction in Interest Relief
The Solution: Our Strategies
1:HOW TO AVOID THE ADDITIONAL 3% STAMP DUTY
– Purchase of mixed residential and non-residential use
– Purchase of property but under adult child’s name
– Securing main residence exemption
1. Purchaser is buying a property which they intend to adopt as their main residence and is replacing the main residence that is sold within the previous three years.
2. Purchaser’s former main residence is sold within three years after the new main residence is purchased. Higher charges are applied on this situation and a refund will have to be claimed later.
2:HOW TO RECEIVE FULL MORTGAGE INTEREST RELIEF AT 40%
Restrictions do not apply to commercial properties, acquisitions of mixed residential and non-residential and properties that qualify as furnished holiday lets. Limited companies also receive full loan interest deduction. The interest relief restrictions only apply to individuals and residential property.
3:HOW TO PAY NO TAX ON £2,000 AND MORE
If you decide to incorporate your business, you can take out £2,000 profits as dividends for each shareholder. Anything above this amount is subject to the additional dividend tax rate of 7.5%.
4:HOW TO SUBSTANTIALLY REDUCE YOUR CAPITAL GAINS TAX
The new policy of Capital Gains Tax reduces the standard rate from 18% to 10% and the higher rate from 28% to 20%.
If you have a limited company, corporation tax of 20% will fall to 17% in 2020.
5:HOW TO SUBSTANTIALLY REDUCE YOUR INHERITANCE TAX
Establish an employer trust – a discretionary trust for the benefit of employees and their family. The shares would then be transferred from the company to the trust.
In effect, the value would be held in a trust with the full value being immediately outside of the estate of any person. This can be achieved without causing any tax charges.