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Where Taxpayers and Advisers Meet

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by Ian McTernan CTA
Thu Dec 03, 2015 12:20 pm
Forum: Property Taxation
Topic: Loans in Excess of Purchase Price
Replies: 4
Views: 1166

Re: Loans in Excess of Purchase Price

Product fee is a cost of finance claimable against rent under the current rules. Unsure as to how these will be treated in 2020, looks like it might be restricted to the 20% tax credit (but I'm sure some whizzes will work a way around that). In your scenario, all the interest is allowable against th...
by Ian McTernan CTA
Thu Dec 03, 2015 12:10 pm
Forum: Property Taxation
Topic: Disclosure
Replies: 14
Views: 2500

Re: Disclosure

Here's a typical problem. I deal with voluntary disclosures and enquiries and even take these on from other firms (or advise, as required). The biggest mistake anyone makes is assuming they don't need help BEFORE they make the declaration, end up in a big mess, and then seek advice- by which time it...
by Ian McTernan CTA
Thu Dec 03, 2015 11:57 am
Forum: Property Taxation
Topic: Carpet replacement - allowable expenditure in BTL?
Replies: 12
Views: 2278

Re: Carpet replacement - allowable expenditure in BTL?

Welcome to the mad world of what is, and what isn't , allowable as a deduction in what should be the simple business of letting a property. As you have replaced the entirety of the carpet throughout the house, under the rules as they currently stand, that's most likely to be classed as non-revenue e...
by Ian McTernan CTA
Thu Dec 03, 2015 11:47 am
Forum: Property Taxation
Topic: SDLT BTL surcharge - effect small LTD developer ?
Replies: 5
Views: 1065

Re: SDLT BTL surcharge - effect small LTD developer ?

Basically the Treasury's agenda is being driven by larger corporates and housing associations who want to get in to the BTL market, but can't compete with the more efficient private landlords, so the Treasury is changing the rules to favour those as they have been told by the large accountancy firms...
by Ian McTernan CTA
Thu Dec 03, 2015 11:40 am
Forum: Property Taxation
Topic: New LTD
Replies: 8
Views: 1154

Re: New LTD

Your missing the obvious. Company B has registered for VAT, and will hence have to charge VAT on the management charges. Company A cannot recover that cost, hence it's now become a cost to Company A. The VAT position of the building works needs careful analysis to determine whether, in fact, there w...
by Ian McTernan CTA
Thu Dec 03, 2015 11:23 am
Forum: Property Taxation
Topic: BUYING HOUSE FOR CHILD
Replies: 22
Views: 2300

Re: BUYING HOUSE FOR CHILD

New calculation would be: tax on £12,000: 7000 at 20%= 1400 5000 at 40%=2000 tax payable £3400 Less: tax credit on £3,600 interest actually paid= £720 Tax payable = £3400-720= £2,680. Net cash position goes from (12,000-3600-1960) £6440 to £5720. If you were a higher rate taxpayer on the whole renta...
by Ian McTernan CTA
Thu Dec 03, 2015 11:09 am
Forum: Income Tax
Topic: Private collector looking to start business - please help!
Replies: 6
Views: 1195

Re: Private collector looking to start business - please help!

This is always a tricky one, when a hobby becomes a business. First thing is to operate a separate bank account solely for the business. 'selling' some of your existing collection to the business might create it's own problems- bear in mind as a sole trader you are the business, so you can't really ...
by Ian McTernan CTA
Thu Dec 03, 2015 10:54 am
Forum: Income Tax
Topic: Buy-to-let new tax changes on mortgage interest relief
Replies: 4
Views: 1191

Re: Buy-to-let new tax changes on mortgage interest relief

We're fighting this change on a number of fronts, as the whole concept of 'relief' for an actual expenses that you cannot avoid is a pile of rubbish. Try telling the mortgage company you want to reduce your payments and see how far you get. There are various campaigns being run- personally I'm in to...
by Ian McTernan CTA
Sat Oct 17, 2015 2:17 am
Forum: Property Taxation
Topic: Rental income transferred to unmarried partner
Replies: 9
Views: 1679

Re: Rental income transferred to unmarried partner

I do wonder sometimes why HMRC don't attack more of this sort of arrangement under the settlements legislation.
by Ian McTernan CTA
Tue Oct 06, 2015 10:34 am
Forum: Income Tax
Topic: Chargeable Event Gains - help please!
Replies: 1
Views: 449

Re: Chargeable Event Gains - help please!

It is possible on any decent commercial package, which are available for a few hundred pounds. I've no idea why a professional practice would ever use HMRC's submission system, which is not known for it's flexibility. I'm sure you have your reasons. PTP's system advises that this is a HMRC special c...

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