I was wondering that
I doubt that they have firmed up the rule yet, but it would be nice to know
that they consider it a problem worthy of a solution.
And there's also the problem of the separating couple where the partner
moving out wants to buy a new property but is still shown as the owner of
the old one (something that the mortgage companies are loath to allow to
change as they like the security of still having both parties liable if
there's a default)
a right can of worms this proposal is (especially as it can be got around by
putting each property into a different Ltd company)
On Fri, 27 Nov 2015 01:25:58 +0000, Fredxxx put finger to keyboard and
Mainly because it's harder, and usually more expensive, to get a mortgage
for a ltd company. Even as a preferential creditor with a secured loan, a
mortgage company is still at greater risk should a company become insolvent
than it is with a loan to an individual. So the costs of a commercial
mortgage reflect that, as does the minimum LTV ratio.
That's not to say it's impossible, by any means, and a company can be an
attractive vehicle for a professional multi-property landlord. But the
costs tend not to work out favourably for the typical non-professional BTL
landlord who has one or two properties that he lets in addition to a
regular job (or a pension) as his primary source of income.
It is, of course, plausible that the new stamp duty rules may offset that
and make company ownership more cost-effective for more landlords. We'll
have to wait and see.
Insert random witticism here
Did you (Fredxxx) mean the capital gains tax "annual exempt amount"
(?11,100 this year) rather than "capital allowances" (which AFAIK are
still not available for residential lettings)?
Not to mention finding buyers willing to buy shares giving only a
minority interest in a company.
It'd be pretty dim if the additional charge were not applied to
companies one way or another given the existing provisions which deny
the benefit of the exclusions from the 15% higher rate SDLT charge if
residential property in trust or owned by a company is occupied by
settlors, people who control the company, their spouses, etc etc.
Yes, I did.
It will be interesting to see what happens to the rules regarding
residency and if there is any more house "flipping".
The loan could still be personal, and still with a charge on the
property. The Ltd company is merely the middle man, where the individual
loans to the company. Directors' loans are quite common in Ltd companies
Or even share options to be paid at an agreed rate in the coming years?
You would think so, but given the Ltd is an identity in its own right,
and that this entity never sells the asset I don't see how any rule of
this nature can be applied in a simple manner.
Well off the cuff 2 options are:
a. bringing the properties within the 15% SDLT rate: could act as a
deterrent but if not gives a nice front-loaded yield. ("It's win-win
Chancellor because we can also hit them now or later with...
b. a further extension of ATED to lower value properties (ie lower
than the changes announced in the Autumn Statetment) - more yield the
more properties are in corporate envelopes.
On Thursday, November 26, 2015 at 10:45:07 AM UTC+1, Optimist wrote:
ffect home owners who buy a
We are project funder with our cutting edge and group capital fund we can f
inance your signatory projects and help you to enhance your business plan,
our financial instrument can be used for purchase of good from any manufact
urer irrespective of location. We specialized in BG, SBLC, MTN, CD,LC , Non
collateral loan, confirmable Bank Draft and other financial assistance fro
m AAA rated bank (Prime Bank). The financial instrument can be invested int
o High Yield Trading Program or Private Placement Programme (PPP). Please s
ee our instrument description and leasing procedure as follow.
DESCRIPTION OF INSTRUMENT:
1. Instrument: Bank Guarantee /StandBy Letter of Credit (Append
2. Total Face Value: Eur/USD 1M to Eur/USD 10B
3. Issuing Bank: AAA Rated Bank (Prime Bank).
4. Age: One Year and One Day
5. Leasing Price: 5.0% + 2% Broker commission
6. Delivery: S.W.I.F.T MT-760
7. Payment: MT103 (TT/WT)
8. Hard Copy: Bonded Courier Service
We specialize in Bank Guarantee lease and sales, there are two types of ban
k guarantee which are Direct Bank Guarantee and Indirect Bank Guarantee. It
s used as Bid Bond, Payment Guarantees, Letter of Indemnity, Guarantee Secu
ring Credit Line, Advance Payment Guarantees, Performance Bond Guarantee E.
Intermediaries/Consultants/Brokers are welcome to bring their clients and a
re 100% protected. In complete confidence, we will work together for the be
nefits of all parties involved.
It seems that HMG did indeed think about this in advance and a refund of the
"overpaid" tax will be obtainable if the "other" primary house is sold
within 18 months of buying the second one.
Dunno whether there are any other conditions (such as it not being rented
out in the gap)
BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here.
All logos and trade names are the property of their respective owners.
Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee
neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.