Neil Patterson

CIOT is seeking clarification from HMRC, which is not forthcoming, concerning all forms of incorporation.

CIOT is also asking for an amnesty for all its members dependent on this clarification. It is not clear-cut for any incorporation at the moment.... Read More

The discrepancies in the stated property values on the deeds could arise from several factors, and understanding how these figures are determined is key to clarifying the situation. Here’s a breakdown of how property values on deeds might be assigned and the potential implications:
1. Who Determines the Values?

Land Registry: The Land Registry typically records information provided during the transaction. If no money changes hands (as in transfers for nil consideration), the "value" might not directly relate to a sale price.
Stamp Duty Land Tax (SDLT): In England and Northern Ireland, SDLT is payable on property transfers, except in cases of nil consideration. Even so, the property’s market value might still be assessed for record-keeping.
Solicitor's Estimate: Solicitors might include a market value estimate on the transfer documentation, either based on local comparables or professional valuation, especially if there is no clear sale price.

2. Why Do the Values Differ?

Market Fluctuations: The values may have been based on differing points in time or methodologies. For example:
£185k might have been based on the solicitor's initial assessment or a previous valuation.
£248k might reflect a valuation closer to the average market value of similar properties on the street.
Land Registry Discretion: The Land Registry may update or revise values during record processing if it has access to more recent market data.
Clerical Errors: Sometimes, discrepancies can result from human error during documentation or registration.

3. Does It Matter?

For Tax Purposes:
If there’s no money changing hands and it’s a family transfer (e.g., to your kids), the stated value generally has no immediate tax implications unless other liabilities (e.g., inheritance tax, SDLT thresholds, or capital gains tax) arise later.
Future capital gains tax (CGT) liability for your children could use the market value at the time of the transfer (£185k or £248k, depending on how HMRC interprets the deed).
For Mortgage or Financial Records: If anyone takes a loan or mortgage against the property later, the discrepancy in recorded value might raise questions.
Legal or Administrative Accuracy: Having consistent and accurate records is ideal for avoiding confusion in future legal or financial dealings.

4. Steps You Can Take

Ask for Clarification from the Land Registry: Request an explanation of how the values were derived for each transfer.
Seek a Formal Valuation: If the value is critical, consider getting an independent valuation to establish a consistent benchmark.
Document Everything: Keep records of all correspondence with your solicitor and the Land Registry to address discrepancies if they cause issues in the future.

5. Implications for the Kids

When transferring to your children, the value of the property at the time of transfer will set the baseline for any future tax assessments, such as:

Capital Gains Tax (CGT): If they sell the property in the future, CGT liability will be based on the difference between the sale price and the value at the time of transfer.
Inheritance Tax (IHT): If the transfer forms part of your estate planning, ensure that the valuation aligns with your broader strategy.

It’s good practice to resolve these discrepancies now to avoid potential issues later.... Read More

Hi Bob, I have added a link to the full data tables used.

Their Yield calculation is based on annual rental income as a percentage of Value.... Read More

Daily Mail have a lot of angry Landlords!
>> https://www.dailymail.co.uk/news/article-14001855/Keir-Starmers-wrong-working-people-Furious-landlords-savers-self-employed-slam-PMs-claptrap-prejudice-hinted-tax-hikes.html... Read More

Dear Mike,
The maximum fine for a breach of Licence is £30,000!

I would recommend you contact our friends at Landlord Licensing and Defence >> https://landlordsdefence.co.uk/... Read More

Hi Jess, Do you have a Partnership agreement and what does it say?... Read More

Correct that should be £315,000 per individual Landlord not per property and now corrected thank you :)... Read More

Hi Jane,
I would recommend a tax advisory service with a very wide set of skills and experience. Someone like Forbes Dawson >> https://forbesdawson.co.uk/... Read More

I don't think you quite get we report the news sometimes of what others are saying without always giving an opinion, but we are always championing on behalf of good landlords.... Read More

Me thinks you may not read all the articles :)... Read More

Hi Andrew, Under current legislation if it is a private individual's main residence then it is considered an AST regardless of the contract.... Read More

I am not an accountant, but from the professional websites it looks like you need to call HMRC on:
0300 200 3300... Read More

Reply from Cats Protection:

"Cats Protection understands that some landlords may be reluctant to allow cats in their properties. However, research shows that pet owners stay longer in their homes, and that the vast majority of pets cause no damage[i]. Through our Purrfect Landlords campaign, we’ve been working hard to highlight the benefits of pet ownership in the rented sector to both landlords and tenants.

Pet-owning tenants face real challenges in finding suitable housing, and this is why the Renters Reform Bill contains a clause to give tenants a right to request a pet which cannot be unreasonably refused. Our own research shows as few as 9% of landlords currently advertise their properties as allowing pets. We see three cats a day handed into our care due to landlord-related reasons such as blanket ‘no pet’ policies.

Unfortunately, the Consumer Rights Act makes no explicit mention of pets. It refers to ‘unfair terms’, and whether this would include a ban on pets within a tenancy has not been tested. We believe it would be unrealistic for the average renter to have the access and means to challenge this in court. This is why the Renters Reform Bill is needed – to explicitly and clearly set out that landlords must not ban pets without good reason.

The proposed Renters Reform Bill contains a specific provision to enable landlords to require tenants to take out insurance (at their own expense) to cover any pet-related damage. We believe this provides suitable reassurance and peace of mind for landlords and removes the need for increased deposits to cover any damage.

Our website contains a wealth of information to help landlords and tenants so that pet ownership can be a benefit to both parties. For more information, please visit cats.org.uk/purrfectlandlords"... Read More

Let me see potential:
Failure to report rental income to HMRC?
Failure to report a CGT liability dependent on PPR relief?
Voter registration fraud?
Universal credit fraud?
Council tax fraud?... Read More

Sorry It's a Readers Question... Read More

Landlord Licensing and Defence specialise in this field and we have had excellent feedback :)... Read More

Massive traffic we have upgraded to 16 servers... Read More

No there are unsurprisingly two Mark Smiths :)... Read More

No Editing Baz it just can't have saved.... Read More

Sorry we have no record of your comment so it may not have saved... Read More