Originally posted by Lance
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Reply to: BTL property in LTD and VAT
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Previously on "BTL property in LTD and VAT"
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Hi all,
just a few notes:- If you get 8% interest on the director's loan, I dont think a £1000 is tax free at all. I remember asking my accountant years ago and they said this interest allowance is for banks/savings. Can you confirm that?
- What I make of the below: You can reclaim the 20% tax on the interest (up to £12570) paid by your company if your income is < £12570. You do this with your SATR.
If you charge interest
Interest you charge your company on a loan counts as both:- a business expense for your company
- personal income for you
You must report the income on a personal Self Assessment tax return.
Your company must:- pay you the interest less Income Tax at the basic rate of 20%
- report and pay the Income Tax every quarter using form CT61
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Originally posted by WTFH View Post
So, the smart(er) investor is aware of what is in consultation (and likely to be passed), and makes financial choices based on the information they have. Others sit back and hold on until after the horse has bolted.
The C EPC requirements could in time even be extended to selling a house. There's thoughts afoot that selling a house with an EPC below C should be banned. Rendering (hundreds of?) thousands of houses economically unsellable and at the same time unrentable too. Best not say any more, too far off topic.
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Originally posted by NowPermOutsideUK View Post
This explains why I have not heard of it and purport to be trolling
"The proposal to change the minimum EPC rating remains open for consultation until December 30th 2021. "
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Originally posted by Fred Bloggs View Post
And anyway the smart(er) money would have their property portfolio exposure in their SIPP by investing in real estate investment trusts which are completely hands off, professionally managed and free of hassle as well as being within the SIPP tax shelter. But it doesn't sound half as sexy, I guess.
"The proposal to change the minimum EPC rating remains open for consultation until December 30th 2021. "
https://burlingtonslegal.com/news/pr...lords-in-2025/
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Originally posted by NowPermOutsideUK View Post
Is this C certificate EPC rumour or fact?
I don't make stuff up and I don't troll these threads.
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Originally posted by Fred Bloggs View Post
Any casual observation of typical BTL housing stock round here reveals an awful lot of property without cavity walls. Insulating them to the levels required will be extremely expensive (if it's even possible) and then will turn the property into a breeding ground for mould spores.
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Originally posted by eek View Post
And the rest - it will cost more than £10k to update the internals to make a heat pump practical.
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Originally posted by Lance View Post
Will that require a heat pump at that stage or soon after? That's £10k down the tubes as well.
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Originally posted by Fred Bloggs View PostThe next turn of the screw on BTL is close. By 2025 (IIRC) all BTL property will have to have a minimum energy certificate rating of C. That's going to wipe out several years of rental income for a large number of BTL properties to be compliant. Some properties are already being sold because they'll be uneconomic to comply with a C energy rating.
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The next turn of the screw on BTL is close. By 2025 (IIRC) all BTL property will have to have a minimum energy certificate rating of C. That's going to wipe out several years of rental income for a large number of BTL properties to be compliant. Some properties are already being sold because they'll be uneconomic to comply with a C energy rating.
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Originally posted by ChimpMaster View Post
Alternative is to leave the loan outstanding indefinitely and charge the 8% annually, pay 20% (withheld by company) and fill out the CT61 once a year. This continues forever if I choose never to have the load repaid, so long as the company is profitable / has funds. It could be one source of recurring income in my retirement. The company will always own the assets and the loan will always be outstanding to me... or to my dependents when the time comes.
https://www.gov.uk/apply-tax-free-interest-on-savings
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