Reply to: Sanity check if I may please - Structure

[cojak]

This thread has turned into an unnecessary flame war so is now closed.

[TheGreenBastard]

Hey you dragged this thread utterly offtopic...

I think you'll find that'll be the locals asserting things with a distinct lack of experience - but hopefully the OP can glean some useful information, subsequently your narcissism requires you to have the last word I see.

Every thread, the same template, from the same clique.

[eek]

Don't recall where I said it was a good idea right now.

I've seen good returns from capital appreciation and yield. 4.5% you will struggle to get via Ltd company (note the topic of this thread), so it's disingenuous to compare to personal savings rates, which are capped at 1K tax free, and then your personal tax band.

Continual goal post moving, amazing.

Hey you dragged this thread utterly offtopic...

[TheGreenBastard]

but your capital gains are screwed by the loss of indexation so the level of return is really just rental income.

And I can get 4.5% return by putting money in a savings account.

Add on the fact that house prices have a nasty habit of not increasing at times of high inflation and I would regard anyone buying new properties at the moment as the greatest fools.

Don't recall where I said it was a good idea right now.

I've seen good returns from capital appreciation and yield. 4.5% you will struggle to get via Ltd company (note the topic of this thread), so it's disingenuous to compare to personal savings rates, which are capped at 1K tax free, and then your personal tax band.

Continual goal post moving, amazing.

[eek]

It's marginally changed in relation to tax for Ltd. companies. Expenses relating to refurbishment and interest still exist for Ltd. company BTL. Thanks for making a strong point for Ltd. company BTLs.

but your capital gains are screwed by the loss of indexation so the level of return is really just rental income.

And I can get 4.5% return by putting money in a savings account.

Add on the fact that house prices have a nasty habit of not increasing at times of high inflation and I would regard anyone buying new properties at the moment as the greatest fools.

[TheGreenBastard]

It hasn't marginally changed. When I first had a BTL property

1) a lot more costs such as refurbishment between lettings was claimable
2) interest was fully deductable
3) CGT was based on an index linked purchase price - that hasn't been the case for over a decade.
4) prices provided a decent return rather than the 4-6% currently available.

Historically landlords used to sell at current return levels...

It's marginally changed in relation to tax for Ltd. companies. Expenses relating to refurbishment and interest still exist for Ltd. company BTL. Thanks for making a strong point for Ltd. company BTLs.

[eek]

The landscape has marginally change, but it's a good problem to have. You mentioned other ways to hold BTL; yet even with associated companies, assuming you're a higher rate of tax payer it's remains the most efficient way to do BTL.

Would I be correct in assuming you have no real life experience with BTL?

It hasn't marginally changed. When I first had a BTL property

1) a lot more costs such as refurbishment between lettings was claimable
2) interest was fully deductable
3) CGT was based on an index linked purchase price - that hasn't been the case for over a decade.
4) purchase prices provided a decent return rather than the 4-6% (if you are lucky) that is currently achievable.

Historically landlords used to sell at current return levels...

[TheGreenBastard]

I don't think I've ever seen a bit of advice from you that was accurate or vaguely usable but hey ho..

Isn't that for others to decide, and not your narcissistic ego?

[eek]

People who do this as a business are taking their time to offer sound advice, and this kind of crap is spewed "becuz I dunt like BTL innit". I thought that kinda crap was for general.

I don't think I've ever seen a bit of advice from you that was accurate or vaguely usable but hey ho..

[TheGreenBastard]

Indeed, so keep your "slaver owner" nonsense our of the professional forums and start a thread in General where we can slap you properly.

Aww poor lass got triggered

[TheGreenBastard]

It clearly isn't just an act with you

Probably because they received advice at the time that it was the most profitable way to organise their BTL. That calculation has changed, and I predict that a majority are unware of the associated company rules and how it affects their profit margin.

So people accidentality accrued property in a Ltd. due to advice? No, that's called intent and managing your tax affairs. Even going along with your brain farts, it still doesn't make sense, an accidental landlord inheriting a property from deceased relatives would have to sell it to a Ltd. company thus accruing stamp duty and destroying any potential gain. If you planned on creating a portfolio, it might make sense to take the hit, but again it stops being "accidental".

The landscape has marginally change, but it's a good problem to have. You mentioned other ways to hold BTL; yet even with associated companies, assuming you're a higher rate of tax payer it's remains the most efficient way to do BTL.

Would I be correct in assuming you have no real life experience with BTL?

[jamesbrown]

I thought that kinda crap was for general.

Indeed, so keep your "slaver owner" nonsense our of the professional forums and start a thread in General where we can slap you properly.

[TheGreenBastard]

WTF would I want BTL properties - way too much like hard work and given the way various taxes work - not really worth the effort....

Also calling you out as a fool is seriously offtopic so I apologise to the OP who when talking about passive income was talking about proper passive income not bad property investment masquerading as a "business"

Edit - the only reason I mentioned it was to highlight the consequences an SPV or other limited company imposes on your consultancy company.

I mean, just how narcissistic do you need to be to post this? The guy from the accountancy firm highlighted the issue, why can't the local clique just leave it at that? One-upmanship and displaying how smart you (think) you are, and it turns out you don't even have real life experience on the matter.

People who do this as a business are taking their time to offer sound advice, and this kind of crap is spewed "becuz I dunt like BTL innit". I thought that kinda crap was for general.

[jamesbrown]

Oh you didn't quote me.

How does one become an accidental landlord, but the properties are within a SPV? Just accept you don't know what you're talking about.

It clearly isn't just an act with you

Probably because they received advice at the time that it was the most profitable way to organise their BTL. That calculation has changed, and I predict that a majority are unware of the associated company rules and how it affects their profit margin.

[eek]

And then additional properties in the dog and cat's names?

WTF would I want BTL properties - way too much like hard work and given the way various taxes work - not really worth the effort....

Also calling you out as a fool is seriously offtopic so I apologise to the OP who when talking about passive income was talking about proper passive income not bad property investment masquerading as a "business"

Edit - the only reason I mentioned it was to highlight the consequences an SPV or other limited company imposes on your consultancy company.