retirement home x buy to let x limited company

[sl129]

i bought a a flat 5 years ago where i lived for 3 years. then me and my boyfreind bought a semi-detatched house 2 years ago where we have been living. when we moved, i rented the flat out to students (multiple occupants). now we are thinking of buying our 3rd buy-to-let to students (multiple occupants). both of us pay around 33% taxes.

would i be better off:
1) buying the 3rd property and keeping the 1st one on my sole name (or on paul's sole name)
2) openning a company (either on mine, or on paul's or on both our names)
3) buying as a retirement home - i heard of a new government programme?
4) buying as a second home
5) buying as a buy to let?
6) what are the taxes implications so far and what are they likely to be in the future?

who would be able to help? an account or a solicitor? do you recommend any?

[Grange]

would i be better off:
1) buying the 3rd property and keeping the 1st one on my sole name (or on paul's sole name)
You would be better off renting out no. 2 and moving into no. 3

2) openning a company (either on mine, or on paul's or on both our names)

Almost certainly not. You really don't need the hassle of running a company!
3) buying as a retirement home - i heard of a new government programme?
Do you mean putting it into a pension fund? Almost certainly 'yes'.
4) buying as a second home
Don't understand you. If you don't rent it out, then you don't get any income from it...
5) buying as a buy to let?
What do you mean?
6) what are the taxes implications so far and what are they likely to be in the future?

who would be able to help? an account or a solicitor? do you recommend any?
An accountant.

[Tax Accountant]

i bought a a flat 5 years ago where i lived for 3 years. then me and my boyfreind bought a semi-detatched house 2 years ago where we have been living. when we moved, i rented the flat out to students (multiple occupants). now we are thinking of buying our 3rd buy-to-let to students (multiple occupants). both of us pay around 33% taxes.

would i be better off:
1) buying the 3rd property and keeping the 1st one on my sole name (or on paul's sole name)
2) openning a company (either on mine, or on paul's or on both our names)
3) buying as a retirement home - i heard of a new government programme?
4) buying as a second home
5) buying as a buy to let?
6) what are the taxes implications so far and what are they likely to be in the future?

who would be able to help? an account or a solicitor? do you recommend any?

1st property is in your own name and you have lived there for the first 3 years. It has now been let for 2 years. You are best to keep this in your own name as you are entitled to generous PPR relief, lettings relief, taper relief and annual exemption, not to mention the final 3 years CGT free. You could carry on letting for sometime and still pay little or no CGT if you were to sell it. Do not transfer to anyone else who has not occupied it as his'her only or main residence.

It would make sense to buy the 3rd property in joint names. It would be best if you both moved into this property and occupy it as your only or main residence and actually let the 2nd property.

If you are reluctant to move out from and let your 2nd property, occupy the 3rd property as your 2nd home for a while if this is possible. You could make a nomination to treat this as your main residence (although in practice it is not your main residence). After a while, you could then let the 3rd property and the 2nd property automatically reverts to being your main residence for CGT purposes.

Best to take advice from an accountant who is experienced in property matters. They will all say they are experienced, so best go by recommendations. Who to recommend is not that easy.

Ramnik

[MrShed]

Apologies, slightly off topic, but what is your career Karongo? Are you an accountant? Or otherwise :)

[Tax Accountant]

Apologies, slightly off topic, but what is your career Karongo? Are you an accountant? Or otherwise :)

Mr Shed,

Wouldn't that be telling? Surely my replies speak for themselves.

Ramnik