Don’t miss out on incorporation relief

If you hold investment property in your own name you may be considering transferring it into a limited company. There are various tax advantages to doing this such as the ability to claim interest relief, potential VAT advantages, and the fact that retained profits will be taxed at a lower level. There is, however, a downside. The transfer of properties…
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A warning about energy efficient improvements

Another reminder (because it is so important) that since the 1st April this year tenants of domestic private rented property can ask their landlord to give consent to their making prescribed energy efficient improvements to the property. From the 1st April 2018, a landlord will be unable to grant a new tenancy of such a property if its energy performance…
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An enthusiastic auction buyer reveals his secrets

Coming, as I do, from a long line of traders I was raised to believe that one should never pay retail. It is for this reason that when I am purchasing investment property I always do so at auction. In my experience, there are a number of key advantages to buying this way. To begin with there are always much…
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A bluffer’s guide to VAT and property investment

“I never use profanity,” said Mark Twain “except in discussing house rent and taxes.” How he would have sworn, one imagines, had he ever been forced to talk about the subject of property investment and VAT. And to stop others swearing we have produced this short bluffer’s guide to the topic. Setting the scene As a starting point, the key…
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The property investor’s incorporation dilemma

Is it more advantageous to use a limited company to buy and hold your property investments or should you hold them direct? On the face of it, incorporation looks the better route. However, there are many other factors to consider, not least your personal circumstances and financial objectives, so professional advice will always be needed. In this article, we look…
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Reducing property tax with a special purpose vehicle

Property development is absolutely in fashion at the moment, with the economic recovery in full swing and a general shortage of places for people to live. There’s no doubt that, for those with the enterprise, skills, and money to undertake developments, this can be a good way to get rich. Thanks for the lecture, you might say, but what’s all…
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Why volatility is the investor

What is going to happen to British and international property markets in the future? Where are the best opportunities? How can investors protect themselves from unduly punitive rates of tax? If these questions were difficult to answer before the Brexit referendum they are even harder to resolve now. For the foreseeable future we can expect nothing but uncertainty. Received wisdom…
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The FHL tax advantage

Traditionally, furnished holiday lettings (FHLs) were something of a niche investment. Typically, the sector consisted of flats and houses in popular seaside locations and major tourist destinations. Most offered pretty basic accommodation. Unless actively managed, moreover, the annual yields tended to be on the low side. Indeed, for many investors FHLs were a source of pin money and/or a way…
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The Knight Frank Global House Price Index

Knight Frank has published its latest figures for the 55 property markets included in its global house price index. To set the scene, the index has grown by some 3% over the last year, up from 2.3% in the previous year. Some 43 of the 55 housing markets tracked in the global house price index saw prices rise, up from…
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Here Be Dragons

Nicholas Adams, a seasoned property investor based in the UK, offers some tax saving tips I am not really a J R Tolkien fan but there is a quotation from The Hobbit that often comes to mind when I am considering different ways in which to reduce the cost of property tax: ‘It does not do to leave a dragon…
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