Optimise Accountants | How will he Budget Announcement affect you?

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    15-Apr-2017

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Property tax specialists

Property Tax Specialists

Helping high rate tax payers invest in property

Each slide should be accompanied by a yes. - Ask: - Would this be useful? - Would this be of benefit to you? - Can you see how this would make you more money

Once you have identified the key benefits that the customer is most keen on then relate the remaining slides to that key benefit to close out more easily.

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Helping high rate tax payers invest in property

Louise and Simon have been property investors since 2006 and not paid any tax on our property portfolio.

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Free guide if you give me your business card or your name, mobile and email and a piece of paper

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

We only focus on property investors like you since 2003 600+ investors across the UK

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Accountants talk

Tax allowable expensesNational Insurance ContributionsCapital Gains TaxCapital AllowancesIncome TaxCorporation TaxCompany structures Limited CompaniesPartnershipsLLPsSole TradersStamp DutyCouncil TaxInheritance taxInternational taxDeed of trustVAT on new buildVAT on refurbishment projectsMore interesting factsMore dataBoredomGet me out of hereI cant take anymorePlease leave me aloneI am going to get a phone and call the policeI mean it I have had enoughIf you can see this then you have good eye sightHave you had enough yet?

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Employment taxSavings income taxInsurance premium taxSelf employment taxNational InsuranceRoad TaxCouncil TaxFuel, alcohol, cigarettes DutyVAT

Tax timeall the time(life, death, taxes)

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Return on Investment (ROI) Do you factor tax in your ROI calculation?

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Jane Medical professional High rate tax payer (2014-15)

100,000 to buy a new flat

25,000 deposit 3,000 profit per year

12% ROI = 3,000 divided by 25,000

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Jane Medical professional High rate tax payer (2014-15)

100,000 to buy a new flat

35,000 (25,000 deposit + 10,000 tax)

1,800 profit per year (after tax)

5.1% ROI = 1,800 divided by 35,000

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Property profits2,100 rent (6 ASTs X 350)

(210) less voids(350) less Utility bills(425) less mortgage(300) less maintenance

815 profit per month9,780 annual profits

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Who is affected by the budget announcement

High rate tax payers

People with furnished properties

People that own limited companies

People with large asset portfolios (for example properties, shares, businesses)

People buying second homes, BTLs

People selling properties

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Who is affected by the budget announcement

Withholding CGTRent a room AllowanceMortgage Interest Relief CapCorporate TaxIncrease SDLTWear & Tear Allowance

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Who is affected by the budget announcement

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

3% additional stamp duty costs (additional tax)

Anything over 40,000 (3% on total amount)

Direct from .Gov website

"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply (sell within 36 months)

Who is affected by the budget announcement

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

SDLT Resi & commercial scaled on tier basisValuesResidential0-125K0%125K - 250K2%250K - 925K5%925K - 1.5m10%1.5m+12%Plus surcharge> 40K3%

ValuesCommercial0-150K0%150K - 250K2%250+5%

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Identify chattels to reduce SDLT and tax

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Identify chattels to reduce SDLT and tax

carpets (fitted or otherwise)curtains BlindsFree-standing furniturekitchen white goodsElectric and gas fires (provided that they can be removed by disconnection from the power supply without causing damage to the property)light shades and fittings (unless recessed).

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Who is affected by the budget announcement

Withholding CGTRent a room AllowanceMortgage Interest Relief CapCorporate TaxIncrease SDLTWear & Tear Allowance

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Property Profits9,780 annual profits

(2,520) wear & tear allowance

7,260 taxable profit

(2,904) tax @ 40% (12% of income)

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Property Profits9,780 annual profits

(2,520) wear & tear allowance

9,780 taxable profit

(3,912) tax @ 40% (16% of income)

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Property Profits9,780 annual profits

5,100 add mortgage interest

14,880 Paper taxable profit

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Property Profits14,880 Paper taxable profit

5,952 tax @ 40%

(1,020) 20% tax relief on mortgage

4,932 tax to pay 20% of income

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

25,200 rental income

Before budget announcement

2,904 tax (11% of rental income)6,876 cash profit (27% of renal)

After budget announcement

4,932 tax (20% of rental income)4,848 cash profit (19% of rent)

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

What does RE stand for?

REPLACE

REPAIR

RENEW

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

What does RE stand for?

Certain improvements are tax allowable:

http://www.hmrc.gov.uk/manuals/bimmanual/BIM46904.htm

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

What does RE stand for?

Not allowable

At Optimise we are all passionate about property, and we think this serves us best to help you

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10% wear & tear on furniture

Must be fully furnished

Beds FurnitureCurtainsWhite goodsSofa, chairs, tablesCabinets and cupboards

Removed from April 2016

Helping high rate tax payers invest in property

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

REPLACE

REPAIR

RENEW

RE What does RE stand for?

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Budget solutions

Buy new properties in a limited company

Transfer existing properties to a limited company

Pay off mortgage (mortgage interest relief 20%)

Invest in commercial properties

Invest in your pension to increase personal allowances

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Now20172020+20%19%18%/17%

Corporation tax rates

People with limited companies

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

10,800 annual profits

Scenario 1: Without Limited Company

4,320 Tax at 40%

Scenario 2: Limited Company

1,836 tax at 17%

Which do you prefer?

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Typically:

Mortgage rates are higher than BTL

Arrangement fees are higher

Deposit are higher (30%+)

Mortgage applications take longer

Considerations when buying in a limited company

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Stamp Duty Land & Tax

Capital Gains Tax

Getting a mortgage

Consideration point: Transfer properties with small CGT

Transferring existing properties into a Limited Co.

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Ramsay v HMRC (2013)

Transfer all properties to a LTD = no CGT

Must be working in property

Incorporation relief

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Questions

but first how to engage with us

?

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

High rate tax payers only

Name

Number

Email address

At Optimise we are all passionate about property, and we think this serves us best to help you

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Helping high rate tax payers invest in property

Tax Consultation for less than 100

http://www.optimiseaccountants.co.uk/financetaxconsultation/

Code Talk33 to get 33% off your consultation

At Optimise we are all passionate about property, and we think this serves us best to help you

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