http://www.landlordzone.co.uk/forums/ en Wed, 22 May 2013 02:34:51 GMT vBulletin 60 http://www.landlordzone.co.uk/forums/images/misc/rss.png http://www.landlordzone.co.uk/forums/ http://www.landlordzone.co.uk/forums/showthread.php?55344-Declaration-of-beneficial-interests-in-joint-property&goto=newpost Mon, 20 May 2013 13:12:29 GMT Hi all, Many thanks to all for your contributions, this site have been a wealth of information. My wife and I jointly own eight houses which we let out, she is due to finish work shortly and we would to like to take full advantage of her tax allowances. In order to share the beneficial... Hi all,

Many thanks to all for your contributions, this site have been a wealth of information.

My wife and I jointly own eight houses which we let out, she is due to finish work shortly and we would to like to take full advantage of her tax allowances. In order to share the beneficial interest say 99% - 1% I believe a form 17 together with a deed of beneficial interest requires to be sent to HMRC. I foresee the knowledgeable advice will probably be to use a solicitor to draw up the deed but I would like to do it myself and take the risk. Can anyone point me to a pro-forma or example of a declaration of beneficial interests?

Many thanks in anticipation. ]]> Tax Questions ray http://www.landlordzone.co.uk/forums/showthread.php?55344-Declaration-of-beneficial-interests-in-joint-property http://www.landlordzone.co.uk/forums/showthread.php?55307-CGT-on-half-share-of-inherited-property&goto=newpost Fri, 17 May 2013 19:36:48 GMT In 2001 my brother and I inherited my mothers house. My brother decided he wanted cash so I bought his share by mortgaging the property. The probate valuation of the house was £180k and so the mortgage was for £90k. The property was subsequently rented out and in order to receive tax relief on... In 2001 my brother and I inherited my mothers house. My brother decided he wanted cash so I bought his share by mortgaging the property. The probate valuation of the house was £180k and so the mortgage was for £90k.

The property was subsequently rented out and in order to receive tax relief on the rental income, I increased the BTL mortgage to £150k and used the money to pay off my residential mortgage.

IM now wondering what the CGT implications are if I decide to sell. IM not sure what the acquisition cost actually is given that I took out a mortgage to buy out my brother. The property is currently valued around £250k so if I sold I would redeem the mortgage with a gain of £100k.

I have also made some improvements such as a new kitchen £5k, new front, back and patio doors £3k & decorating and wondered if these are counted towards any CGT relief. I also understand I can gain relief since the property was rented out continually over the last 12 years.

Apart from this BTL investment, I am in permanent employment and pay tax at 40%.

So in summary any advise in how I should calculate my CGT position if I decide to sell would be appreciated. ]]> Tax Questions gunnag http://www.landlordzone.co.uk/forums/showthread.php?55307-CGT-on-half-share-of-inherited-property http://www.landlordzone.co.uk/forums/showthread.php?55261-Where-is-Telometer&goto=newpost Wed, 15 May 2013 20:46:49 GMT He seems to have disappeared from LLZ. I hope he's alright. I miss his input.

Anyone heard from him? ]]> Tax Questions mind the gap http://www.landlordzone.co.uk/forums/showthread.php?55261-Where-is-Telometer http://www.landlordzone.co.uk/forums/showthread.php?55240-Transferring-Half-Ownership-to-Wife-Question-on-Stamp-Duty&goto=newpost Tue, 14 May 2013 22:49:53 GMT Hi there,

My house is valued at £350k. I've got an equity of £100k and an outstanding mortgage of £250k. I transfer half share of the property to my wife and we make a joint application to re-mortgage our house by borrowing £250k at a mortgage fee of £2k, which is added to the mortgage.

Do we need to pay Stamp Duty for the transfer of title? In other words, would the consideration for SDLT purposes be £125k(in which case no SDLT would be due) or 126k (i.e. [250k + 2k]/2, in which case an SDLT of 1% would apply.)

Thanks in advance for your help. ]]> Tax Questions QUASIMODO321 http://www.landlordzone.co.uk/forums/showthread.php?55240-Transferring-Half-Ownership-to-Wife-Question-on-Stamp-Duty http://www.landlordzone.co.uk/forums/showthread.php?55196-Loans-from-parents-equity-released-from-residential-property&goto=newpost Mon, 13 May 2013 15:21:36 GMT Hi everyone

I wonder if I could pick your collective brains on scenarios for their deductability and other issues:

1) Loan from parents
If I intend to borrow money from my parents fir a deposit and sign a document stating it's a loan, can this be deducted? I genuinely would be treating it as a loan, and it would be deducted from any inheritance (as I have a sister) if it's still o/s if my parents pass away.

Obviously there are issues about the proftiability of a property at effectively 100% LTV, but don't worry about that for now!

Presumably a mortgage company would not agree to this though, right, or would they not mind if it was unsecured but still passed the 125% ratio, or whatever they choose to apply?

2) Release equity from resi mortgage
I am fortunate enough to have £100k equity in my main residence.

If I took £75k out and used it for deposits on two properties, is this interest deductable - i.e. the increased interest that I then incur on my house mortgage?

In terms of disclosing this to a mortgage company, I presume that they would be fine with this, but I don't actually see too much of a difference between this and the first example. I suppose the 2nd example is covered by the equity in the resi house, whereas the parental loan is not.

Many thanks in advance.

Rob ]]> Tax Questions badbobby http://www.landlordzone.co.uk/forums/showthread.php?55196-Loans-from-parents-equity-released-from-residential-property http://www.landlordzone.co.uk/forums/showthread.php?55191-Commencement-amp-Pre-Trading-Expenditure&goto=newpost Mon, 13 May 2013 12:20:23 GMT This is one that bugs me, and I still don’t know what’s right or wrong even after many tell me or show me. I buy a property, and decorate to get ready for rental, including replacing kitchen cupboards, as some are broken, and the bath suite, a the bath is rusty. I read the following somewhere: ... This is one that bugs me, and I still don’t know what’s right or wrong even after many tell me or show me.
I buy a property, and decorate to get ready for rental, including replacing kitchen cupboards, as some are broken, and the bath suite, a the bath is rusty.
I read the following somewhere:

“You may incur some expenses for the purposes of your property business before it even starts. Such expenses incurred within seven years before the commencement of your business may still be allowable if they would otherwise qualify under normal principles. In such cases, the expenses may be claimed as if they were incurred on the first day of the business.”

And is you read “PIM2505 - Beginning and end of a rental business: commencement” at http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm , it also reads:

Relief is only due under these special rules where the expenditure:

• is incurred within a period of seven years before the date the rental business is started, and
• is not otherwise allowable as a deduction for tax purposes, and
• would have been allowed as a deduction if it had been incurred after the rental business started

.
Can anybody further clarify? ]]> Tax Questions ciccio http://www.landlordzone.co.uk/forums/showthread.php?55191-Commencement-amp-Pre-Trading-Expenditure http://www.landlordzone.co.uk/forums/showthread.php?55179-Husband-and-Wife-buying-property-to-let&goto=newpost Sun, 12 May 2013 18:26:56 GMT We are a married couple. The mortgage on our own home is paid off so we are looking to remortgage and buy a second property to rent out for the longterm and possibly live in when we are old and grey. We have found such a property. Have just started looking into the tax implications... my husband... We are a married couple. The mortgage on our own home is paid off so we are looking to remortgage and buy a second property to rent out for the longterm and possibly live in when we are old and grey. We have found such a property.
Have just started looking into the tax implications... my husband is a higher rate tax payer and I have no income. So should we buy the property in my name only from the outset thus avoiding the need for a declaration of trust. We were going to own in joint names until I realised it would mean more tax. Is there any benefit to my husband having a small share and what are the risks if any, of the wife having the property in her name only.? Thanks. ]]> Tax Questions Thinkofanumber http://www.landlordzone.co.uk/forums/showthread.php?55179-Husband-and-Wife-buying-property-to-let http://www.landlordzone.co.uk/forums/showthread.php?55115-Council-Tax&goto=newpost Thu, 09 May 2013 09:48:17 GMT Most Councils have introduced a charge on empty properties removing the exempt notice that they used to give up until April 1st 2013. One of my councils. Havering, are now charging the full council tax immediately the tenant vacates. My dispute is that 1. They are charging for services... Most Councils have introduced a charge on empty properties removing the exempt notice that they used to give up until April 1st 2013.

One of my councils. Havering, are now charging the full council tax immediately the tenant vacates.

My dispute is that

1. They are charging for services they know will not be used by an empty property.

2. They have set a precedent by giving 25% for a single person occupancy and 0% if empty.

I intend to challenge this tax. I think it reasonable to charge a proportion of the tax but I think they should give a 30 day allowance and then charge a percentage of the total tax, i.e. 60%.

If there are other Landlords that would like to join me on this crusade, I would appreciate their help.

Paul David ]]> Tax Questions pfduk http://www.landlordzone.co.uk/forums/showthread.php?55115-Council-Tax http://www.landlordzone.co.uk/forums/showthread.php?55106-Deposit-Protection-info-used-by-HMRC&goto=newpost Wed, 08 May 2013 18:11:35 GMT Were you aware that HMRC are using information from the various DP schemes to track down landlords who fail to declare their rental income? Many landlords who own property, always collect rent in cash, and never declare the income so avoiding paying their fair share of income tax. They probably... Were you aware that HMRC are using information from the various DP schemes to track down landlords who fail to declare their rental income?

Many landlords who own property, always collect rent in cash, and never declare the income so avoiding paying their fair share of income tax. They probably hadn't thought of being tracked down by this back-door method, but HMRC use all sorts of info to such ends. Pity they can't make Vodaphone, Starbucks, and Google cough up the many millions they apparently owe. Nabbing a few landlords for the odd thousand quid seems a bit peevish.

I heard of a landlord who buries money in the garden just in case they ever receive a knock on the door. They obviously don't need it in a rush so why are they doing it? ]]> Tax Questions Stonehenge http://www.landlordzone.co.uk/forums/showthread.php?55106-Deposit-Protection-info-used-by-HMRC http://www.landlordzone.co.uk/forums/showthread.php?55085-Self-Assessment-and-Jointly-Owned-Property&goto=newpost Tue, 07 May 2013 23:06:52 GMT Hi I have put one of my properties into joint names with my future husband (we get married in September). Although in joint names it was for ease of getting mortgage and I receive the financial benefit of the property. OH is higher rate tax payer and I am basic rate. Do I need to have a... Hi

I have put one of my properties into joint names with my future husband (we get married in September). Although in joint names it was for ease of getting mortgage and I receive the financial benefit of the property. OH is higher rate tax payer and I am basic rate.

Do I need to have a declaration drawn up and sent to the tax man? If so, should I do this now or wait until September? Do I declare jointly owned property on the Self Assessment?

Many thanks
Claymore ]]> Tax Questions Claymore http://www.landlordzone.co.uk/forums/showthread.php?55085-Self-Assessment-and-Jointly-Owned-Property http://www.landlordzone.co.uk/forums/showthread.php?55028-Moving-in-together-tax-questions&goto=newpost Fri, 03 May 2013 20:13:45 GMT Hi I would really appreciate some advice please My partner and I would like to move in together. We both own houses independently, his is in negative equity so he is not in a position to sell it at the moment. We have agreed to move in to my house and rent his property out. The rent he... Hi

I would really appreciate some advice please

My partner and I would like to move in together. We both own houses independently, his is in negative equity so he is not in a position to sell it at the moment. We have agreed to move in to my house and rent his property out. The rent he will receive will deliver a profit of c. £400 per month based on the allowable expenses that can be offset against rental income, however he will also contribute to the bills at my property when he moves in, paying a 'rent' to live there, he will also pay council tax at my property. Can his 'rent' at my property be offset against this rental 'profit'

Thank you in advance!!

S ]]> Tax Questions Sadiej28 http://www.landlordzone.co.uk/forums/showthread.php?55028-Moving-in-together-tax-questions http://www.landlordzone.co.uk/forums/showthread.php?55008-Transferring-income-to-wife-to-reduce-income-tax&goto=newpost Thu, 02 May 2013 20:08:56 GMT Our rental property is jointly owned and as my wife does not work and therefore has a full tax allowance I want to transfer the income from our letting into her name to reduce our tax burden. What do I need to do to do this? Our rental property is jointly owned and as my wife does not work and therefore has a full tax allowance I want to transfer the income from our letting into her name to reduce our tax burden.

What do I need to do to do this? ]]> Tax Questions llc http://www.landlordzone.co.uk/forums/showthread.php?55008-Transferring-income-to-wife-to-reduce-income-tax http://www.landlordzone.co.uk/forums/showthread.php?55005-Help-Vat&goto=newpost Thu, 02 May 2013 17:20:12 GMT Hi, I wanted to find out if someone out there can help me answer a few questions. I brought a commercial property where I was a tenant 3 years ago was charged VAT on the purchase price I reclaimed this as input tax, I have now decided to sell the business together with the freehold building do I... Hi, I wanted to find out if someone out there can help me answer a few questions.

I brought a commercial property where I was a tenant 3 years ago was charged VAT on the purchase price I reclaimed this as input tax, I have now decided to sell the business together with the freehold building do I have to charge vat on the sale to the purchaser.

Also I am no longer VAT registered any more.

Any help greatly appreciated. ]]> Tax Questions Forums2you http://www.landlordzone.co.uk/forums/showthread.php?55005-Help-Vat http://www.landlordzone.co.uk/forums/showthread.php?54981-Costs-of-lease-extension-tax-deductible&goto=newpost Wed, 01 May 2013 18:28:31 GMT Hi there

I wonder if anyone could advise about how, from a tax perspective, to treat a statutory extension of a lease on a property rented out to tenants.

I can't seem to find a consistent viewpoint online so am a bit lost.

Are any of the following deductible from an income tax perspective:

1) cost of lease extension
2) solicitors fees and freeholders solicitors fees
3) property valuation for purpose of lease extension
4) extra related charges such as land registry cost etc

Or can the extension be treated as a capital allowance at all?

Thanks for your advice
Karen ]]> Tax Questions karenoc http://www.landlordzone.co.uk/forums/showthread.php?54981-Costs-of-lease-extension-tax-deductible http://www.landlordzone.co.uk/forums/showthread.php?54973-Council-tax-in-prior-years-treat-as-pre-letting-capital-expenditure&goto=newpost Wed, 01 May 2013 15:37:00 GMT Here's the scenario: bought a flat at auction a few years back which required major structural work (freeholder / managing agent responsible).

There have been numerous delays in getting the work done hence the flat is currently inhabitable due to damp caused by delays in getting exterior works done (long story).

We have been paying council tax on the empty property for a few years (already used up the maximum 12 month exemption).

I am thinking the worse case scenario is that we cannot claim any pre-letting expenses as revenue expenses, as the flat is not in a fit state to let yet.

Therefore, can we claim ALL expenses that we have incurred (going back 7 years) as capital expenses, including the council tax?

many thanks in advance. ]]> Tax Questions numero http://www.landlordzone.co.uk/forums/showthread.php?54973-Council-tax-in-prior-years-treat-as-pre-letting-capital-expenditure