Keep a flat or buy annuity?

bigadaj

chucknorris wrote: »

I meant exactly what I said, that she was senior, i.e. she is the branch manager and a partner on the business (she is not old). I know estate agents don't need qualifications, I didn't say that they did.

Yes, it was a bit of a joke, a little like estate agents really.

So you have a senior branch manager not knowing a very basic question about property, when you will be paying them thousands, poor isn't the word.

bigadaj

relaxtwotribes wrote: »

Yes, thank you for correcting me. But wouldn't a true comparison include the corporation tax paid before any dividend can be declared?

No that's irrelevant, you don't pay the corporation tax, the company does.

There was a nominal tax credit until the recent tax changes.

chucknorris

bigadaj wrote: »

Yes, it was a bit of a joke, a little like estate agents really.

So you have a senior branch manager not knowing a very basic question about property, when you will be paying them thousands, poor isn't the word.

Actually we won't be paying them a fee, instead of selling and buying, we have decided to extend our existing 3 bed house. We weren't impressed with what we have seen on sale, and we live in one of the best streets in Dorking on a very large plot. Extending gives us about a £45k head start (by not paying stamp duty, estate agents fees and solicitor's fees (x2)).

bigadaj

chucknorris wrote: »

Actually we won't be paying them a fee, instead of selling and buying, we have decided to extend our existing 3 bed house. We weren't impressed with what we have seen on sale, and we live in one of the best streets in Dorking on a very large plot. Extending gives us about a £45k head start (by not paying stamp duty, estate agents fees and solicitor's fees (x2)).

Excellent, so unusually they've added more value than cost in your case.

chucknorris

bigadaj wrote: »

Excellent, so unusually they've added more value than cost in your case.

Not really, I'm chartered quantity surveyor so I know how much the extension is likely to cost, they merely confirmed my correct estimate of what our house was worth. Although to their credit, they knew the situation (that I might not sell) and they still contributed their time. The change of mind was more driven by the lack of decent properties available (or likely to become available) at a comparable price to extending.

jamesd

Mrs_pbradley936 wrote: »

Really? I didn't know that. I thought if you owned more than one property then you had to pay the extra.

The extra stamp duty applies if you own and buy without having sold already. Either sell first or arrange simultaneous sale and purchase and there's no extra to pay.

If you still own at the time of the new purchase you have to pay the extra but can reclaim it up to 36 months later once the sale has completed.

relaxtwotribes

bigadaj wrote: »

No that's irrelevant, you don't pay the corporation tax, the company does.

That's a silly comment. Shareholders own the company so any tax the company pays comes out of the pockets of the shareholders.

bigadaj

chucknorris wrote: »

Not really, I'm chartered quantity surveyor so I know how much the extension is likely to cost, they merely confirmed my correct estimate of what our house was worth. Although to their credit, they knew the situation (that I might not sell) and they still contributed their time. The change of mind was more driven by the lack of decent properties available (or likely to become available) at a comparable price to extending.

Yes the marginal cost to them was tiny, and their is still potential business from you or people you might know given their input.

However their lack of knowledge about basic property taxation and treatment hasn't reflected well.

bigadaj

relaxtwotribes wrote: »

That's a silly comment. Shareholders own the company so any tax the company pays comes out of the pockets of the shareholders.

No, not silly at all.

It's a business expense, which you would, expect the comoany to reasonably mitigate as a partial business owner.

Are you now saying shareholders should be scrutinising and be affected by the price of materials, property or other expenses that the business expends it's income or capital upon?

atush

relaxtwotribes wrote: »

That's a silly comment. Shareholders own the company so any tax the company pays comes out of the pockets of the shareholders.

No not silly. Corporation tax is paid before the Div rate is set. As an expense it reduces the company profits like any other expense.

So the Dividend is not taxed via corporation tax.