Buy to Let without mortgage Scotland

outlaw777

Just to confirm the property I'm living in at the moment  is in my name so would it be better to buy a buy to let property (no mortgage all cash) in my wifes name to save on tax, how much tax would I have to pay on a 2nd property? Just to confirm my wife doesn't have a property in her name at the moment.

 Also, once the property is bought would it be better for us to privately manage the property or to let a local estate agent do this for us? What would be the full tax charges once this was bought in my wifes name would it be an annual fee of the rental income or % that would go to HMRC sor for example if we made £10k rent per year please advise?

user1977

outlaw777 said:

Just to confirm the property I'm living in at the moment  is in my name so would it be better to buy a buy to let property (no mortgage all cash) in my wifes name to save on tax, how much tax would I have to pay on a 2nd property? Just to confirm my wife doesn't have a property in her name at the moment.

Which tax are you referring to here? For married couples, the additional dwelling supplement for LBTT will still apply no matter whose name the properties are in.

ProDave

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

outlaw777

user1977 said:

outlaw777 said:

Just to confirm the property I'm living in at the moment  is in my name so would it be better to buy a buy to let property (no mortgage all cash) in my wifes name to save on tax, how much tax would I have to pay on a 2nd property? Just to confirm my wife doesn't have a property in her name at the moment.

Which tax are you referring to here? For married couples, the additional dwelling supplement for LBTT will still apply no matter whose name the properties are in.

Would there be any way around this as thats a lot of money going to taxman?

outlaw777

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

_Penny_Dreadful

outlaw777 said:

Just to confirm the property I'm living in at the moment  is in my name so would it be better to buy a buy to let property (no mortgage all cash) in my wifes name to save on tax, how much tax would I have to pay on a 2nd property? Just to confirm my wife doesn't have a property in her name at the moment.

 Also, once the property is bought would it be better for us to privately manage the property or to let a local estate agent do this for us? What would be the full tax charges once this was bought in my wifes name would it be an annual fee of the rental income or % that would go to HMRC sor for example if we made £10k rent per year please advise?

Firstly there will be the ADS, which is now a whopping 6%, to pay on top of the regular LBTT. 

In terms of rental income it is subject to income tax just the same as any salaried income your wife currently receives. How much income tax she would have to pay depends on how much other income she receives during the tax year plus whatever expenses related to the letting of the property she can use to offset the income tax due on the rental income e.g. insurance and the cost of the annual GSC. 

Keep_pedalling

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

user1977

outlaw777 said:

user1977 said:

outlaw777 said:

Just to confirm the property I'm living in at the moment  is in my name so would it be better to buy a buy to let property (no mortgage all cash) in my wifes name to save on tax, how much tax would I have to pay on a 2nd property? Just to confirm my wife doesn't have a property in her name at the moment.

Which tax are you referring to here? For married couples, the additional dwelling supplement for LBTT will still apply no matter whose name the properties are in.

Would there be any way around this as thats a lot of money going to taxman?

Either divorce or murder.

km1500

avoid BTL in Scotland is my advice

dimbo61

I read today  an article by Spareroom that Scotland was the only part of the UK to see a drop in Rental prices per room.
The Scottish government are doing a great job of destroying the private rental sector in Scotland with Eviction bans. RENT FREEZE and new rules and regs.
Could you invest  any spare money into ISA,s or pensions.
You can sleep better without the stress 

outlaw777

Keep_pedalling said:

outlaw777 said:

ProDave said:

You need to look at the bigger longer term picture.

If you buy it jointly, the rental income is split so depending on your tax situations, you might pay less income tax.

And when you sell it eventually if jointly own you have 2 lots of capital gains tax allowance to use up (granted that is not worth as much as it used to be)

Please advise what is the best way to try and make money from a buy to let then with no mortgage?

Why do you think sinking your savings into a rental property is the best option? Do you have previous experience of being a landlord? 

No none at all.