The last House Price Crash...

turbobob

As I understand it, if residential property is bought through a self invested pension there are prohibitive tax penalties, so not sure if that would work either.

Generali

As I understand it, if you own a company and the company buys a house for you to live in then the house is a taxable benefit equivalent to the rent you would pay on the open market for that place.

Walletwatch

Generali wrote: »

As I understand it, if you own a company and the company buys a house for you to live in then the house is a taxable benefit equivalent to the rent you would pay on the open market for that place.

That's correct in my opinion - unless you start up a firm and declare your line of business to be housing, in which case, I guess the cost of property you buy can be declared as an expense.

lostinrates

chucky wrote: »

we were discussing top end property - people that buy top end property are not employed, they are usually self employed. they would be paid gross and pay tax at the end of the tax year.

if any were employed by they would also be directors - again directors would receive payments gross.

What percentage of the top end of the market are we talking about here?

As for tax ....if any saving is going to dissapear in HPC (I'm not aware of how this can save tax though) I'd feel it might as well disappear in taxes...which are useful :rolleyes: than into the ether, which helps no one.

Tax prudence is one thing, something I take seriously but throwing money away to avoid it going even to the labour goverment is a bit OTT.

Generali

Walletwatch wrote: »

That's correct in my opinion - unless you start up a firm and declare your line of business to be housing, in which case, I guess the cost of property you buy can be declared as an expense.

I think the main exception is if you need to live where you work.

For example, a mate of mine is a fish farmer and so needs to live at the farm in case the fish start drowning or escape onto the road (I'm a bit hazy on the details of fish farming I admit).

Walletwatch

chucky wrote: »

that is correct - and expenses are tax deductible

Agreed, but that only makes it tax-efficient for self-employed people opening a firm that professes to be in the business of real estate. Highly restrictive and non-generalisable as a tax-efficient purchase across the board surely?

turbobob

chucky wrote: »

i never said property would be purchased by the pension.

this is what i said 'as i said it would be cash spent on property that would otherwise have gone to the inland revenue.

it's like many people will throw cash into their pension and benefit from the tax relief also reducing their tax liability at their end of the tax year.'

I never said you said it would be

I guess the real "top end" would be obligarch's and the like who will probably not be UK domiciled for tax purposes.

Generali

In my experience, the very rich always find a way round paying taxes.

As Leona Helmsley said, "Only the little people pay taxes."

WTF?_2

chucky wrote: »

have you read my posts or did you pick this half way - then you wouldn't be asking the last question?

Perhaps it was one of the many you make which you later go back and delete?

GDB2222

chucky wrote: »

we were discussing top end property - people that buy top end property are not employed, they are usually self employed. they would be paid gross and pay tax at the end of the tax year.

if any were employed by they would also be directors - again directors would receive payments gross.

I don't that there is anything in that post that I agree with. I don't think there's any point in discussing this further, Chucky.

Can I just warn people here against acting on any tax advice that Chucky may provide.