Urgent Advice

Red-Squirrel_2

Caravan_of_Love wrote: »

due to my on/off girlfriend coming back to me and we were planning to make a steady go of it as we are now both 35.

Who says romance is dead! :rotfl:

G_M

Caravan_of_Love wrote: »

Thanks for the reply. My bad for not being clear about that part, the original plan was to rent the existing 2 bed as I only have 7 years left on the mortgage, less if I throw cash at it every year. The mortgage/s are solely in my name and she is not involved from that standpoint.

Well I now don't understand the purpose of the thread?

Nothing has changed. Your romantic diffficulties have no impact whatsoever on your financial and property plans.

So since you had a (presumably) well-thought-out plan, just go ahead as before.

As for the romantic problems, there are more appropriate forums elsewhere which will provide advice and support.

00ec25

Caravan_of_Love wrote: »

Sorry? I said I wasn't looking to scam the system.

I gave you an explanation of why a Ltd Co would not be tax efficient, you ignored it. My post was not in the same vein as artful's which you reacted to. I was not passing comment on scams, merely offering an explanation of how a Ltd Co may not be suitable depending on some details you ignored

you asked a question about tax, you ignored my detailed reply explaining your tax options

Crashy_Time

900 p.m for a four bedder! Some people pay that for a room (supposedly)

glasgowdan

Comments about paying your duty to society are missing the point - everyone has the right, moral and legal, to reduce tax by doing things in the most efficient way possible. You'd be a fool not to; otherwise you might as well make regular voluntary donations to central government.

OP; I would stop wasting time with this girlfriend. And if you can afford things, sell the 2 bed, buy the 4bed, move in and gradually improve it. This would be a smart financial move, and any sensible single girl will look at a man like you as a ready package - good job AND a family-sized home ready to nest in!

Forget trying to become a landlord just to make a bit of cash while you sort things out - it's not a simple thing any more and should be left to those with a lot of dedication to the cause.

steampowered

My lender (Halifax) would only consider granting consent to let after the mortgage has been in place for 6 months.

From a tax perspective, you've got a few things to think about stamp duty; income tax on the rent; and capital gains tax on any properties sold which are not your main residence.

You could always sell the 2-bed which would be efficient from a stamp duty and CGT perspective, live in the 4-bed for a bit, then re-evaluate in a couple months time?

theartfullodger

Clearly someone with such expertise as you will be aware of the severe changes in tenancies in Scotland starting with any new tenancy from 1st December which include such things as the abolition of the "no fault", s21-type, eviction.
https://forums.moneysavingexpert.com/discussion/5730349
These changes will seriously limit your options in getting the property back from any tenant. And allow tenant to give notice, with no come-back, after 28 days of start of a tenancy.

You state

I didn't ask to avoid tax, I asked for the most tax efficient way.

in reply to my comment regarding

wriggling out of such obligations

Seems to me, probably to many, that you were trying to work out options for

wriggling out of such obligations

Best regards, Artful: (Landlord, Scotland+, since 2000).

Caravan_of_Love

theartfullodger wrote: »

Clearly someone with such expertise as you will be aware of the severe changes in tenancies in Scotland starting with any new tenancy from 1st December which include such things as the abolition of the "no fault", s21-type, eviction.
https://forums.moneysavingexpert.com/discussion/5730349
These changes will seriously limit your options in getting the property back from any tenant. And allow tenant to give notice, with no come-back, after 28 days of start of a tenancy.

You state in reply to my comment regarding Seems to me, probably to many, that you were trying to work out options forBest regards, Artful: (Landlord, Scotland+, since 2000).

No idea what your problem is. If I was looking to rip off the taxman I would not have bothered posting and put the house up in a paper ad with the intention of hoping to avoid getting caught due to not declaring the income.

I was simply looking to canvas opinion and listen to advice.

Caravan_of_Love

glasgowdan wrote: »

Comments about paying your duty to society are missing the point - everyone has the right, moral and legal, to reduce tax by doing things in the most efficient way possible. You'd be a fool not to; otherwise you might as well make regular voluntary donations to central government.

OP; I would stop wasting time with this girlfriend. And if you can afford things, sell the 2 bed, buy the 4bed, move in and gradually improve it. This would be a smart financial move, and any sensible single girl will look at a man like you as a ready package - good job AND a family-sized home ready to nest in!

Forget trying to become a landlord just to make a bit of cash while you sort things out - it's not a simple thing any more and should be left to those with a lot of dedication to the cause.

Thanks Dan, appreciate the response. Sounds logical as well ;-)

Caravan_of_Love

steampowered wrote: »

My lender (Halifax) would only consider granting consent to let after the mortgage has been in place for 6 months.

From a tax perspective, you've got a few things to think about stamp duty; income tax on the rent; and capital gains tax on any properties sold which are not your main residence.

You could always sell the 2-bed which would be efficient from a stamp duty and CGT perspective, live in the 4-bed for a bit, then re-evaluate in a couple months time?

Stamp duty took the 4 bed property up to home report value so you could potentially look at it as swerving that I suppose.

Yes you are right if I were to move in to the 4 bed and sell the 2 bed I could then reclaim the stamp duty back if it is within 18 months of purchase I believe.

Another viable option, thanks.