Summer Budget 2015 – Landlords Reactions

NW You just took the words out of my mouth. I was speaking to the accountant yesterday and asked him why they only picked on private landlords , why not both? They would have raised more.According to the accountant they had some legal difficulties and if they can work that out, Corporated landlords would be the phase 2. However if private landlords are sucessful with the judicial review and they can not get around this legal issue then they would have to reverse on private LL and may apply to new buy to let only from the time they announced. He has advised me to do nothing at the moment till the outcome because even after that what is stopping them bringing in the phase 2. Waste of money. He also said this HMRC does not see as a business it is investment income and same will apply to corporate landlords.

We used Mark Smith to incorporate via BICT but luckily incorporated before 1st April so there was no Stamp duty due. We were deliberating but took the plunge a week before the deadline. Re capital gains, it turns out that the only benefit of no price increase since we purchased our properties is the fact that we didn't have capital gain to pay on the transfer. I think we r in a very unique position as this is not the case for most landlords. Our deliberation was around the lenders, however we have spoken to all our lenders and they said that we can't pay our mortgages out of a ltd company, but that's fine, mark has devised a contract so we pay the mortgage out of our existing personal account then just transfer all profits into the Ltd company so everybody is happy and it is compliant.

I did mine pre April 1st have u had u documents from hmrc ? Are you in a partnership ? I did all this before the deadline and still faced a 1% SDLT Bill ?

I thought zero stamp duty due before 1st April but I got told by mark it was 1% yesterday I think partnerships are exempt and I do have partners ! The show thing was rushed

Reply to the comment left by "NW Landlord" at "27/04/2016 - 17:38":

Hi NW landlord I have a question I also spoke to mark smith, I thought as a partnership their would be no stamp duty ? Of course with incorporation relief their is no upfront cgt tax, but I thought for partnerships their is no stamp duty ? Is this not correct?

I am under that impression ? Where have you heard it's not upfront that was my worry was going to be 58k plus marks fee ? A lot of money if it's not upfront how is it paid ?

I've just written to Mark to ask. Our average property price is £85k so under the 125k threshold b4 1st April. We set up a ltd company rather than partnership, don't understand the differences so will feed back when I hear back. What was your average property price?

Reply to the comment left by "syed shah" at "27/04/2016 - 19:21":

Syed, my understanding is that, if you have reasonable sized portfolio say about 6-8 properties and you spend at least 20 hours a week managing your properties and have NO letting agents managing for you then you are entitled to S.162 relief which in layman terms means that, you are exempt from paying CGT and Stamp Duty.

There is a successful test case namely Ramsay.

Just a thought. If partnership is started now 2016. By 2020 the three year rule for not paying stamp duty would apply. In 2020 go for the trust route with Mark. In between the income is shared between the partners. That way there would be no upfront fee I think.

Our average was 58k about a lot if the houses we buy are low end due to yield etc