Summer Budget 2015 – Landlords Reactions

ML, directors loan sounds quite attractive however as far as I am concerned it is not possible.

I have a hunch it has some restrictions attached to it as I recall talking to Simon Lever an accountant who is also on property118.

Simon, if you are reading this, could you shed some light on it?

Reply to the comment left by "Saeef Khan" at "12/12/2015 - 13:57":

We spent a day filming real tenants who will be affected by all the new taxes imposed on landlords. I think it will be a good ten minute film but much depends on the skill of the editors.

I managed to keep the Bentley out of shot!

Reply to the comment left by "David Price" at "12/12/2015 - 14:04":

I hope that you remembered your best Leonard Rossitter impersonation as well!

Reply to the comment left by "Manchester Landlord" at "12/12/2015 - 13:06":

You would still have to pay SDLT, plus the extra 3% after April 2016 unless the properties are with less than £40,000 each.

You would also pay CGT on any gains exceeding to annual CGT exemptions.

Have you considered the above and looked into alternatives?
.

Reply to the comment left by "Mark Alexander" at "12/12/2015 - 11:07":

Quite right Mark - you have been pretty open. Re my pension, first & foremost take my tax free cash. Then I am considering HMRC recognised Qrops (Qualifying Overseas Pension Schemes) in a secure tax efficient jurisdiction out of reach of the British taxman. Obviously tax rates & tax rules vary substantially for different countries, hence this is an ongoing deliberation wrapped up with where I would consider living if not in the UK. Admittedly a concern will be currency fluctuations but as I am not presently dependent on the income from my pension, I will hopefully be able to still turn on & turn off the income tap to suit exchange rate fluctuations. With regards our property portfolio, my first goal was to unencumber it even before Clause 24 as one day albeit a long way off, the low 1.25- 2.50% SVR's I'm sitting on will be a thing of the past. Much of this has been done already (the higher SVR's first) with the balance of funds required all ready & in place to redeem the rest when it suits me (obviously before 2017 now). We are also carefully considering (whether we live here or abroad) an Offshore Trust Scheme for our personally owned property portfolio but am waiting to see HMRC's view on a large case that's been fully declared to them which may take up to 2 years before I know the final outcome but that can soon whizz by. Until then I'm currently going through the process of ensuring I have no more than £75K exposure on the cash element within my pension scheme with any one banking group, and the same goes with the various pension fund houses (am nervous over the UK economy). Our other savings/assets eg i) Investment Plans held for the last 15 years are already tax free should we wish to draw down on them & unless any new tax changes are made retrospective, these should be okay having been established so long ago ii) Cash ISA's built up since day one will hopefully not be attacked (my mouth to G_d's ears) so I want to keep these along with the Investment plans to draw on only if our net income is eroded by inflation in future years or if other tax levies in whatever jurisdiction we live in are introduced that reduce our net income iii) cash on deposit not to exceed £75K per banking group per person including that which is held in my pension fund which is proving difficult as not enough banks out there that aren't already within a super group or used up within my pension fund iv) I still need to decide what else to do with liquid cash on deposit especially as interest rates are so low & we could one day see negative interest rates plus you never know how bad the economy could get v) keep an element of cash notes to hand in the event of armageddon (Greece, Argentina's experiences shouldn't be ignored just because the UK has "historically" been a secure & overall well run jurisdiction) vi) am currently researching use of the numerous Wealth Protection Trusts that exist - too early to say too much here vii) element of gold bullion held in an offshore gold vault viii) assuming we hold on to our portfolio wherever it's held, if RTB in the PRS ever starts to feel a threat, immediately start to position tenancy agreements so that S21's can be served & possession gained, after which the decision of what to do will be dependent upon where our property is held & other options open to us at that time. There's more tidbits but they're the main headings, all of which is a moving feast as we're in the very early planning stage at present. Any thoughts on other ideas are very welcome.

Reply to the comment left by "David Price" at "12/12/2015 - 14:04":

David,

LOL, you have done a great job keeping Bentley out of shot.

I meant utmost*

The sooner Mars gets colonised the better - the only Question then will be do we go there ourselves or send all the idiots there ....?

GO what are you on ?

http://www.theguardian.com/housing-network/2015/dec/11/cumbria-george-osborne-build-homes-floods

Reply to the comment left by "Trendo " at "12/12/2015 - 15:47":

Perhaps we are the idiots for electing them . . .

Reply to the comment left by "Saeef Khan" at "12/12/2015 - 15:34":

Well out of order Saeef.

Reply to the comment left by "Saeef Khan" at "12/12/2015 - 13:47":

there shouldn't be any issues with directors loans because all you are doing is introducing your own personal funds into the company as a loan, and the company in turn then buys your property.