BUY-TO-LET and the TAXMAN !!!

mountain-man

I am looking to jump inot the buy-to-let market (with say 4 small properties) with a view to sitting on them until they are worth a bit more and sell for profit.

HOWEVER - I do not understand either the tax implications of this (i.e CGT / taper relief etc) that my wife and I could incur.

I am a 40% tax payer.She is a 22% tax payer.

I also had the idea of setting up a company to buy the properties - and rent them out so I could offset some tax liability (e.g. buy a company car / home office etc.) - but again do not know the CGT liabilities of this.

If companies do not get CGT allowances (??) - can I buy properties and rent them to a company I set up which in turn rents them out to tenants - so being able to offset expenses against normal tax but still qualifying for CGT allowance ????????

Does anyone know.....????

Cook_County

I Have Responded To This Question Elsewhere> Please Merge Posts!

calmgirl

Be very carefull their are new regs comming in very soon saying things like you cant charge more than 10% than the local council etc , You cant charge more than you mortgage repayments, Also the condition of the property is to be assesd by local council and if not found up to standard the tennant can get the work done of their own back but you foot the bill. I recomend that you buy one run down property do a renovation and re-sell quick

Ian_W

calmgirl wrote: Be very carefull their are new regs comming in very soon saying things like you cant charge more than 10% than the local council etc , You cant charge more than you mortgage repayments, Also the condition of the property is to be assesd by local council and if not found up to standard the tennant can get the work done of their own back but you foot the bill. I recomend that you buy one run down property do a renovation and re-sell quick

Can you point me to the source of this info re new regulations please? I can't find any reference to it at ODPM website who are responsible for housing matters.

Chris4817

calmgirl wrote:

Be very carefull their are new regs comming in very soon saying things like you cant charge more than 10% than the local council etc , You cant charge more than you mortgage repayments, Also the condition of the property is to be assesd by local council and if not found up to standard the tennant can get the work done of their own back but you foot the bill. I recomend that you buy one run down property do a renovation and re-sell quick

Sorry but I think your comments are inaccurate.

I have a buy to let property which I own outright. As I am not allowed to charge more than the mortgage does that mean that I have to give my tenants their rent for free?!

amboy

maybe she was reffering to the impending housing act change in April, it is going to be the biggest shake up for years.

Howevevr it is down to each local authority to interpret and administer it.

Might be interesting to start a thread to see how each authority is doing.

Seems as though ours is concentrating on the student houses which will all be classed as HMO but only licences needed for 3 storey buildings with 6 or more tenants.

other details such as deposit scheme has not really been made clear yet but if anyone knows how it works then it would be helpful. I believe the borough of brent in london have trialled the deposit scheme for a few years.