5 ways to reduce UK buy to let Property tax being paid to HMRC

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Content – In this video you will learn

▶ What properties I used to invest in during the years 2006 to 2010. I will also explain and discuss the types of properties that I now invest in to yield a much better Return On Investment (ROI)
▶ The types of tax that you will be faced throughout your property investment journey.
▶ The common mistakes that property investors make. We will also highlight with examples the mistakes that are made, which results in an overpayment of tax.
▶ The administration basics of being a property investor. HMRC require you to keep receipts for six years., We will discuss what should be held and how those receipts should be stored.
▶ Section 24 mortgage interest relief. I will be providing you with an example of what the tax changes are to the mortgage interest and associated tax reliefs. We will show an example of a high rate tax payer that is a property investor. We will show how much tax they paid in 2015-2106 and how much more tax they will pay because of Section 24 mortgage interest relief cap from 2021
▶ We will show you many different ways in which Section 24 may be mitigated as a property investor.
▶ The use of limited companies may property investors have increased over time. There are many tax reasons for this. One of them being is that corporate tax rates will drop to 17%. This is less than the 20% income tax band for basic rate tax payers. Mortgage interest costs are also 100% allowable within a limited company.
▶ There are many ways of extracting money out of a limited company and other benefits that are not subject to income tax or benefits in kind tax charges for you as an employee and the employer.
▶ Holding companies are also being used. This is because of the tax efficiencies that may be obtained by having a holding company that subsequently owns the Special Purpose Vehicles (SPVs).
▶ There are ways to ensure that companies are set up in a way to ensure that you benefit from entrepreneur's relief. This means that you only pay 10% Capital Gains tax when the limited company is closed down
▶ We will discuss the difference between a limited company that buys and holds buy to let properties and limited companies that holds property flips. There are clearly tax benefits and there are also some risk mitigation benefits of holding different companies
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Видео 5 ways to reduce UK buy to let Property tax being paid to HMRC канала International Tax & Property Tax