14 The Sunday Times June 16, 2019

MONEY

Table shows the cheapest tariff from the 3 cheapest suppliers.Excludes fixed tariffs of less than 12 months’ duration. Excludes tariffs that do not have national coverage. Excludes tariffs where payments are taken in advance of the customer coming on supply. F=Fixed rates V=Variable rates

ENERGY DEALSTable shows the cheapest tariff from the 3 cheapest suppliers. Excludes fixed tariffs of less than 12 months’ duration. Excludes tariffs that do not have national coverage. Excludes tariffs where payments are taken in advance of the customer coming on supply. F=Fixed rate

Supplier Average annual bill Rate ContactNabuh Energy £900 F 0330 041 4902Utility Point £904 F 0345 557 7878 People’s Energy £918 F 0131 285 5510Source: TheEnergyShop.com — 01259 220 270

CREDIT CARDSINTRODUCTORY RATES

Provider Card type Introductory purchase APR 1 Reward ContactBarclaycard Platinum 27-month Purchase & Balance Transfer Visa 0% for 27 months 19.9% No 0800 731 0200MBNA 0% Transfer & Purchase Mastercard 0% for 27 months 20.9% No 0345 606 2062Yorkshire Bank Gold Mastercard 0% for 26 months 18.9% No 0800 678 3320

BALANCE TRANSFERS

Provider Card type Introductory purchase Transfer fee 2 APR 1 ContactMBNA Long 0% Mastercard 0% for 29 months 2.75% (no min) 19.9% 0345 606 2062Halifax 29-month Mastercard 0% for 29 months 3% (no min) 19.9% 0345 944 4555Sainsbury’s Bank Mastercard 0% for 29 months 3% (min £3) 19.9% 0808 540 5060

CASHBACK CARDS

Provider Card type APR 1 Cashback ContactAmerican Express Platinum Cashback 28.2% 1%-1.25%. Intro 5% for 3 months 0800 917 8047American Express Platinum Cashback Everyday 22.9% 0.5%-1%. Intro 5% for 3 months 0800 917 8047Santander All in One Mastercard 21.7% 0.5% 0800 389 99051 APR = annual percentage rate, dependent on credit rating. 2 Fee charged on the amount of each balance transfer during the introductory period.Source: Moneyfacts.co.uk

SAVINGS ACCOUNTSINSTANT ACCESS

Provider Account name Min deposit Interest rate ContactCynergy Bank 1 Online Easy Access (Issue 23) £1 1.5% cynergybank.co.ukVirgin Money 2 Double Take E-Saver (Issue 10) £1 1.5% uk.virginmoney.comMarcus 3 Online Savings £1 1.49% marcus.co.uk

NOTICE ACCOUNTSProvider Account name Notice period Min deposit Interest rate ContactSecure Trust Bank 4 90-day Notice 90 days £1,000 1.91% securetrustbank.comHampshire Trust Bank 120-day Notice (Issue 3) 120 days £1,000 1.9% htb.co.ukSecure Trust Bank 4 60-day Notice 60 days £1,000 1.69% securetrustbank.com

FIXED-RATE BONDSProvider Account name Term Min deposit Interest rate ContactMetro Bank Fixed-term Savings Account 1 year £500 2% metrobankonline.co.ukBank & Clients Fixed-rate Account (Issue 2) 2 years £1,000 2.25% bankandclients.comSecure Trust Bank Fixed-rate Bond (15.07.22) 3 years £1,000 2.4% securetrustbank.com1 Rate includes 0.5% bonus for first 12 months. 2 Maximum of two withdrawals a year. 3 Rate includes 0.15% bonus for first 12 months. 4 Maximum of three withdrawals a year. DEALS ARE LISTED ONLY IF THEY ARE COVERED BY THE UK FINANCIAL SERVICES COMPENSATION SCHEME (FSCS) OR A EUROPEAN EQUIVALENTSource: Savingschampion.co.uk — 0808 178 5354

What it doesInvests in high-quality, growing companies listed in Japan but operating both locally and globally.

What it invests in The co-managers look for companies with a strong and sustainable competitive advantage. The fund’s largest holding is Fast Retailing, which owns Uniqlo, and it also has a large exposure to consumer goods companies such as Pigeon, which makes baby products, as well as firms taking advantage of trends in Japan such as digitisation and a shrinking labour force.

PerformanceThe current managers have been running their strategy since 2009 but the fund only became available to UK investors inNovember 2016. Since then it has returned 35.2% versus the 11.4% delivered by its benchmark, Topix — the Tokyo Stock Price Index. The annual ongoing charge for investors is 0.91%.

What the managers say“The focus is on sustainability and visibility of growth through different economic environments,” said fund managers Chantana Ward and Richard Kaye.

What the experts sayAmaya Assan, research manager at the investment consultant Square Mile, said: “Ward and Kaye are committed managers with an in-depth knowledge of the companies they are invested in. They are dedicated to [backing] . . . Japanese companies that can deliver sustainable returns over the long term.”Ali Hussain

FUND FOCUSCOMGEST GROWTH JAPAN

Best BuysFOREIGN CURRENCYThese are the interbank rates at 5pm on Friday, which show where themarket is trading.They are not indicative of the rate you will be able to get.

EUROGBP>EUR

1.12

CHILDREN’S ACCOUNTSProvider Account name Account type Min deposit Interest rate ContactHalifax Kids’ Monthly Saver Regular saver £10 4.5% halifax.co.ukSantander 1 123 Mini Current Account Current account £300 2.96% santander.co.ukCambridge 3-year Fixed-rate Bond Fixed-rate bond £1,000 2% cambridgebs.co.uk1 Interest rates are tiered: 1% on balances of £100-£199; 1.98% on £200-£299; 2.96% on £300-£2,000.

JUNIOR ISAS

Provider Account name Min deposit Interest rate Rate ContactCoventry Junior Cash Isa (1) £1 3.6% V coventrybuildingsociety.co.ukNS&I Junior Isa £1 3.25% V nsandi.comTSB Junior Cash Isa £1 3.25% V tsb.co.ukV = variable rate. Source: Savingschampion.co.uk — 0808 178 5354

CASH ISASINSTANT ACCESSProvider Account name Min deposit Interest Transfers in ContactCoventry 1 Easy Access Online (Issue 2) £1 1.5% Yes coventrybuildingsociety.co.ukVirgin Money 2 Double Take E-Isa (Issue 7) £1 1.5% Yes uk.virginmoney.com1 Rate includes 0.35% bonus until 31.08.20. 2 Maximum of two withdrawals a year.

FIXED RATE

Provider Account name Term Min deposit Rate Transfers in ContactCharter Savings Bank Cash Isa 1 year £5,000 1.62% Yes chartersavingsbank.co.ukAldermore Cash Isa 2 years £1,000 1.8% Yes aldermore.co.ukSource: Savingschampion.co.uk — 0808 178 5354

CURRENT ACCOUNTSCREDIT INTEREST

Provider Account name Account fee Interest rate 1 Balance ContactCo-operative Bank Current with Everyday Rewards None £4 a month – 0345 721 2212TSB Classic Plus None 5% 2 £1-£1,500 0345 975 8758Nationwide FlexDirect None 5% 3 £0.01-£2,500 0800 302 010

OVERDRAFTS *

Provider Account name Account fee Interest rate 4 0% overdraft limit ContactFirst Direct 1st Account £10 a month 5 15.9% £250 0800 242 424M&S Bank Current Account None 15.9% £100 0345 900 0900Starling Current Account None 15% £0 starlingbank.com1 Based on funding of £1,000 a month. 2 Rate reduces to 3% from 02.07.19. 3 Introductory rate for one year, then 1%. 4 Equivalent annual rate. 5 Fee waived if minimum funding of £1,000 is met. * Based on overdraft of £500 for 15 days a month. Some accounts require minimum funding/direct debits to open or receive rates shown.Source: Moneyfacts.co.uk

AMERICAGBP>USD

1.26SWITZERLANDGBP>CHF

1.26AUSTRALIAGBP>AUD

1.83

ICO

NS

BY J

AM

IE J

ON

ES

MORTGAGES2-YEAR FIXED RATES

Lender Rate Scheme Deposit Fee Notes ContactCoventry 1.39% Fixed to 30.09.21 35% £999 LV 0800 121 8899Barclays 1.63% Fixed to 31.07.21 15% £999 LV 0333 202 7580Yorkshire BS 1.84% Fixed to 30.09.21 10% £495 V 0345 166 9510

3-YEAR FIXED RATESLender Rate Scheme Deposit Fee Notes ContactCoventry 1.55% Fixed to 30.09.22 35% £999 LV 0800 121 8899Coventry 1.85% Fixed to 30.09.22 15% £999 LV 0800 121 8899HSBC 2.34% Fixed to 31.07.22 10% £0 LV 0800 494 999

LONG-TERM FIXED RATESLender Rate Scheme Deposit Fee Notes ContactCoventry 1.75% Fixed to 30.09.24 50% £999 LV 0800 121 8899Yorkshire BS 2.08% Fixed to 30.09.24 15% £495 V 0345 166 9510Coventry 2.25% Fixed to 30.09.24 10% £999 LV 0800 121 8899TSB 2.29% Fixed to 31.08.29 40% £995 LV 0800 056 1088

TRACKERS */ DISCOUNTSLender Rate Scheme Deposit Fee Notes ContactLeeds 1.38% Tracker +0.63% to 31.08.21 25% £999 LV 0345 045 4049HSBC 2.09% Tracker +1.34% for 2 years 10% £999 ELV 0800 494 999Nationwide 2.14% Tracker +1.39% for 5 years 40% £999 AELV 0800 302 010Hanley Economic 1.99% SVR -3.45% for term 40% £999 ELV 01782 255 000

FIRST-TIME BUYER / LOW DEPOSITLender Rate Scheme Deposit Fee Notes ContactFurness 2.69% SVR -3.10% for 2 years 5% £0 BR 0800 220 568Newcastle 2.59% Fixed to 31.07.21 5% £498 0345 606 4488Barclays 2.02% Fixed to 31.07.24 25% £749 FPV 0333 202 7580

BUY TO LETLender Rate Scheme Deposit Fee Notes ContactLeeds 1.59% Tracker +0.84% to 30.09.21 40% £999 LV 0345 045 4049Ipswich 3.15% Fixed to 30.06.21 20% £1,149 R 0330 123 0773Virgin Money 2.12% Fixed to 01.09.24 40% £995 LV 0345 605 0500Early repayment charge applies unless otherwise stated. * Most deals track Bank of England base rate. Notes: SVR = Standard variable rate; A = £500 cashback for first-time buyers; B = £500 cashback; E = No early repayment charge; F = Help to Buy or shared-equity scheme; L = Free legal work for remortgages; P = Purchases only; R = Free valuation and legal work for remortgages; V = Free valuation. Source: landc.co.uk — 0800 373 300

12

14PUZZLES HAVE MOVEDNEWS, PAGES 28-29

Elizabeth Wilkinson, headof dispute resolution at solicitors Slater Heelis, said: “Booking.com lets its providers upload information, so it is the owner who is responsible for accuracy, not the website. I can see that customers might think some or all of the arrangement is with Booking.com, and that they would have some protection or rights against it. However, the small print seeks to prevent this.”

Deborah Heather of independent assessors Quality in Tourism agrees that customers must read the terms and conditions of any booking website carefully. “Sites argue that they connectproviders with customers. I get that to a degree — but surely they owe some responsibility to the people who are relying on them?”

Eleanor, meanwhile, is planning her honeymoon the old-fashioned way: by ringing hotels herself.

Buy-to-let professionals denied best mortgage deals

Until 2017, landlords couldclaim tax relief against any mortgage interest costs, in effect reducing their tax liability for buy-to-let. This was particularly lucrative for landlords who paid higher- rate tax. However, campaigners said this gave landlords huge advantages in the market, creating a boom that pushed up prices and sidelined first-time buyers.

Since April 2017 the level ofrelief has been whittled away, so that landlords can now only claim a limited amount of higher-rate relief. From next April, none of the finance costs will qualify for higher-rate relief.

Brokers say that rather than drive smaller landlords towards limited companies, this has led landlords with many properties to put more of them into companies.

The chief difference between holding a rental

property in a company or personally is tax. Hold a buy-to-let personally and profits are taxed at your marginal rate (20%, 40% or 45%). On sale of the property, you incur capital gains tax liability, which can be 28% for a higher-rate taxpayer (18% for basic rate).

There are other charges. Since April 1, 2016, anyone buying a property in addition to their main home pays an additional three percentage points of stamp duty on top of the normal rates.

Putting a property in a limited company changes all this. The letting becomes a business and is subject to corporation tax, paying 19% on the profits (set to drop to 17% from next April) — clearly a substantial tax reduction forhigher-rate taxpayers.

Another consideration isthat anyone wanting to take money from the company in the form of dividends would be taxed. Previously the company owner could take £5,000 in dividends per year tax-free, but this was cut to £2,000 in 2018. If the landlord has no other earnings, it counts towards their £12,500 tax-free annual personal allowance.

After this there are three separate tax rates: 7.5% for basic-rate taxpayers, 32.5% for higher-rate taxpayers and 38.1% for additional-rate.

“Tax alone is rarely a goodenough reason for holding property through a company,” said Paul Falvey of advisers BDO.

Landlords who set up as companies to buy a property are charged substantially higher mortgage rates than those acting as individuals.

Rates on mainstream buy-to-let mortgages are as low as 1.81% for a two-year fixed rate with the Post Office. The cheapest comparable deal for someone buying as a limited company is 2.99% with The Mortgage Works, part of Nationwide. Both deals are for borrowers with a 25% deposit and carry a £995 fee.

A crackdown on higher-rate income tax relief on mortgage interest for buy-to-let has led more landlords to consider moving their flats and houses into a limited company — in effect making them exempt from income tax, because any profits incur corporation tax instead.

However, brokers say thathigher rates on buy-to-let mortgages for landlords who use a company are putting many off. Also, those who hope to move their existing properties into a company face an array of charges.

David Hollingworth of brokers London & Country said: “For landlords with maybe one or two properties who are not thinking of adding to their portfolios,

starting a company is not really being considered. Where we are seeing it is with landlords who have a number of properties already and are looking to expand.

“However, there are substantial costs. It is vital to get tax advice before taking any steps.”

Figures from London & Country show other top mainstream buy-to-let deals include a 3.15% two-year fix from Ipswich Building Society, with a 20% deposit and a £1,149 fee; or 2.16% with a 40% deposit from Virgin Money, fixed for five years, with a £995 fee.

However, a limited company would pay 3.45% fixed for two years with a 20% deposit and a fee of 0.5% of the sum borrowed, with Paragon; or 3.49% with a 35% deposit, fixed for five years, with West Bromwich Building Society, again with a 0.5% fee.

Company tax breaks tempt landlords but beware high rates, says James Coney

We thought we’d paid – but then came the price hikeHens cry foul as Booking.com’s cheap deal fell apart, writes Felicity Hannah

Eleanor Thompson began organising her summer hen do in January to keep the price down for her friends.

The 34-year-old charity worker used Booking.com, a website that carries Airbnb-style listings from private landlords as well as hotels, to find a house in Brighton, paying £475 for a weekend’s stay for 10. But months later, just weeks before the trip, Booking.com got in contact to say there had been an error and she owed an extra £275 — or would lose the house.

“I booked early because Iwas worried about prices going up,” said Eleanor, who marries fiance Paul in September. “Hen parties can be expensive and I wanted my friends to know what they were signing up to. The house wasn’t glamorous or in the best location, but it was good value.”

She had accepted terms and conditions that required her to pay 70% of the price if she cancelled, and the full amount if she cancelled within 60 days of her stay.

Booking.com did offer herthe opportunity to cancel without paying a fee, but by this point all other affordable properties had been snapped up. What’s more, her friends

had bought train tickets and flights to attend.

“I thought the price was fixed. I had no idea there was a possibility of it changing,” said Eleanor. “I would hesitate to use Booking.com again because I wouldn’t know where I stand. What’s the point of booking if I can’t trust the prices?”

Booking.com said that it had tried to call her about the price change.

Eleanor disputes this: “My phone would notify me if I had a missed call. That didn’t happen.”

Booking.com told The Sunday Times that the property owner had made an error in the rates, which is why they had been increased.

It added: “An issue where[an owner] has incorrectly loaded rates on our platform is extremely rare. As soon as we are made aware, we will try to find a resolution for all parties involved.

“In this case, we have [agreed with the owner] to

ALEX ROBINSON

Provider Rate Details LTV Fee

Mainstream buy-to-let

Post Office 1.81% Fixed to 30/09/21 75% £995

Ipswich 3.15% Fixed to 30/06/21 80% £1,149

Virgin Money 2.16% Fixed to 01/09/24 60% £995

Limited company buy-to-letThe Mortgage Works 2.99% Fixed to 31/07/21 75% £995

Paragon 3.45% Fixed for 2 years 80% 0.50%

West Brom 3.49% Fixed to 31/07/24 65% 0.50%

WHY MAINSTREAM BUY-TO-LET RATES BEAT THOSE FOR COMPANIES

Why book so far ahead if I can’t trust website’s prices?

honour the reservation at the price the guest booked.”

Good news for Eleanor andher hens. However, there appear to be no safeguards to prevent prices rising at any point if a hotel or property owner says a Booking.com rate was displayed in error.

What complicates mattersfor customers is that their contract is not with the large, international website they book through, but with the end supplier.

The Brighton hen party house found on the website had been posted by a private landlord