I can only think of 3: 1. Oxygen use on breathing tax ( dead people 50% discount), 2. Daily steps tax ( wheelchair users 10% discount), 3. Insurance, road tax and weekly MOT on push bikes ( 10% discount if you currently paying 100% of breathing tax, and you are over age of 110)
Tax MPs with 2nd jobs 60% tax and close their restaurant in the Commons. Also get rid of the Lords and stop Liz Truss's £150k annual pension since she only worked for 2 weeks.
Green Taxes on Properties: • To align with the UK’s net-zero carbon goals, the government could introduce green taxes on properties that fail to meet certain energy efficiency standards. This would be a form of environmental tax on buy-to-let investors, especially if their properties are rated poorly in energy performance (EPC ratings). • Landlords might be required to upgrade properties to a certain standard (e.g., EPC rating of “C” or better) or face higher tax rates or fines for energy-inefficient properties.
As someone who is related to a wretched politician, I told people what was coming 2 years ago. The governments Moto is “Why should we build & make when we can squeeze & take.”
Conservatives put Section 24 in place not Labour. Section 24 was introduced by prime minister David Cameron and chancellor George Osbourne as part of the 2015 Finance Act. It was not Labour. When labour was in power they did not bring in anything like Section 24 for landlords.
@@sofinaaghios If they can't control migration, then freeing up planning is not going to move the needle. the housing stock decreased in real terms by 0.6% with the net migration we are currently experiencing
The editing and flow of this video are top-notch. It’s rare to find such a well-produced video that balances information and entertainment so seamlessly.
Section 24 in the context of property tax in the UK refers to changes in how landlords can claim mortgage interest tax relief, which was introduced by George Osborne, the Chancellor of the Exchequer, in the 2015 Summer Budget under the Conservative government of David Cameron.
Limited companies are not the answer for landlords who don’t have other jobs and can keep total profit after all costs below the higher rate tax threshold. Trying to take income from a limited company tax efficiently is not as easy as some would think and can lead to double taxation factoring in corporation tax and personal tax rate. Limited companies are not a one size fits all this is poor advice ALL budding landlords should get proper tax advice before jumping into a LTD company structure just because someone on RUclips tells them to.
Great talk saj I started off with a holding company and then an spv for btl purchases but had so much trouble with lenders not wanting to lend to a company owned by another company so ending up shutting it did you have similar issues
The tax avoidance mentioned is for property 118 who where served with a dotas , stop notice becouse they were advising that Yiu could pull out your equity and give it to your ltd co as a director loan which u could get back later which was questionable however the Rest of the incorp relief advise is correct and well documented in HMRC manuals . Yiu should have mentioned this part of the so called avoidance scheme comments
Fantastic video and I’m going to save this to my playlist right now for others to learn from. I like paying taxes personally because it’s such a good feeling knowing you’re doing what’s right for your country. I’m going to get stick for this comment ha ha.
At 9:55 in to the video, you found the answer to, why? Big corp want to own it. Doing the same with farm land, make farming not viable through red tape, then buy it up!
Thinking outside the box, I have a question. Can the tax problem be solved by using a business loan to purchase instead of a mortgage? It does look as if that is a possibility for those who did not sell their rentals into ltd companies. I do believe that you could claim all of the interest. This is what I got from a search... Interest paid on loans taken out by businesses is a deductible expense from your final profit or loss figure when your tax bill is calculated. The loan interest can only be deducted from profits if the loan is exclusively for a business purpose or a property letting
Did I hear the woman correctly? Did she say that it was the Labour Party that introduced Section 24, i.e., that Income Tax relief on mortgage interest payments would be given at a maximum of 20%, rather than at the marginal rate of Income Tax paid, so higher rate taxpayers, ie 40% and 45%, would suffer, if the properties owned in their own names? I could have sworn that George Osborne brought this in! PS He did!
If she got this basic fact wrong what else is she saying is credible. Saj is however right large corporations are moving in and will get tax breaks to do so.
@@MRW515 I can see where you are coming from, but they use the erroneous fact as a prop to support their claim thaypt Labour will do even worse, based on somebody else's track record!!
@@paulgerrard123 Each individual is different so this is not tax advice per se. The problem of holding property investments in a limited company is how to extract the profits? The profits are first charged to Corporation Tax. Then, if the owner extracts a salary, they pay Income Tax and NICs. if extracted as a dividend, then Income Tax is payable. The general rule if nothing better interferes is to own property initially in a personal name up to the limit of and remaining a Basic Rate Income Tax payer, so that Section 24 curbs on mortgage interest become irrelevant. Beyond that, then to own within a limited company makes sense.
Salary and pension deducted before corporation tax. Dividends after corporation tax at lower rates(currently) than income tax. There are all sorts of tax writes you can do in a limited company that is not available when the property is in your own name.
@@seanmurray8051 If the investor is a Basic Rate Income Tax payer, then, unless there are other pressing reasons, the first thought should be to hold in one's own name, avoiding the extraction of profits problem.
Besides a few slips I think she's good. But why do all these "professionals" keep going on about section 24 not applying to ltd companies as if it's some kind of weird mistake. Well the 20% reducer is to match 20% basic rate, there is no concept of basic rate for ltd companies, and unless they changed the corporation tax rates only for property companies it wouldn't make a difference (or hardly would). So it makes more sense to worry about whether or not they'll increase the corporation tax rates only for ltd property companies. Unless of course you think they might restrict the relief on interest to a much lower level than 20% which would be even more ridiculous.
I cannot see any government bringing in section 24 into companies as lots of large financial entities own large property portfolios and it would do more harm than good.
Viewers expect the guest Amy Richardson to provide sound Tax advise, but to start by a wrong piece of information on the very tax subject itself is not encouraging. Section 24 of the Finance Act 2015 was introduced by then-Chancellor George Osborne and Prime Minister David Cameron Both are under the Conservatives. Labour was not in government for the last 14 years.
@@rogerpoolman6387 Nothing stopping you getting a long mortgage term when the limited company is not in a group structure, and then the day after the mortgage is paid to the company, add the company into a group structure by the usual means.
I don't believe they will touch the property ltds. This would damage too many of themselves and their friends. And the " foreign" investments. As a consequence, it would damage Property prices thus banks Businesses... and the Banks don't like that. Overall, attacking the big guys never happens. Too Naive to think otherwise.
Yes Tories under Osborne. This is where the assault on landlords started of course Labour will be even worse they’re ideologically wedded to hating landlords and the fact that tenants will end up worse off in the long run won’t even register. Unless their great plan is to rely on the big corporates like Lloyds taking over then the PRS will be decimated.
There’s no way Section 24 could come to limited companies this is a vacuous argument as all Limited companies can offset profits against debt making some distinction just for property business’s would be ludicrous.
Well more then half of the world can be considered as tax havens compared to UK tax . No wonder people who have business are leaving because it doesn’t matter where they berried you it matters how you live.
Best to NOT have a limited company if someone's income is from property income only and less than £50k approximately. Isn't it better to be in personal names. Or am i wrong?????
😂😂😂😂😂 they have lost the plot! Time for revolution i think. Hold on, they have money i think. King just got pay rise! Despite fact, that 1 in 5 ppl live in poverty nowadays 🎉🎉🎉
section 24 rules are and have been in scotland for years and hasnt realistically reduced the number of private rentals now the highest since the 70s the recent higher rate of interest did more damage to those badly advised with mortgages they cant pay if the property is empty even for a short time but property is an investment and comes with risks those that need high mortgages should not invest in the rental property market neither will the tax changes kill the market for most people who fall under or near to the higher tax rates i was a fund manager for over twenty years in all markets but as approching retirement i no longer wish to eat sleep investment analysis so now have a an eleven property portfolio continually let providing myself and my wife an income in region of 7.5% plus around 140 to 150k combined i dont grudge the tax charges as income as that is what it is i dont know many landlords planning to sell ever as there is little thats as secure with that return without serious involvement and increased risk in managing your investment
S24 has been around in England for years too, 7 years to be exact and it has been a reason for many landlords to sell up. I'm pleased to hear that you are happy personally with your tax position but I disagree with your general assertion that tax is not a massive problem and that it's fair. If you mean CGT is income then you are almost insanely wrong. 1)re section 24 resulting in some landlords being taxed over 100% is ridiculously unfair, 2) re CGT - capital growth which requires equity to be at risk should not be taxed at income tax levels
What taxes do you think this government might introduce for property investors?
National insurance on rental income
Higher Capital Gains Tax would be punishing enough, so only that.
I can only think of 3:
1. Oxygen use on breathing tax ( dead people 50% discount),
2. Daily steps tax ( wheelchair users 10% discount),
3. Insurance, road tax and weekly MOT on push bikes ( 10% discount if you currently paying 100% of breathing tax, and you are over age of 110)
Tax MPs with 2nd jobs 60% tax and close their restaurant in the Commons. Also get rid of the Lords and stop Liz Truss's £150k annual pension since she only worked for 2 weeks.
Green Taxes on Properties:
• To align with the UK’s net-zero carbon goals, the government could introduce green taxes on properties that fail to meet certain energy efficiency standards. This would be a form of environmental tax on buy-to-let investors, especially if their properties are rated poorly in energy performance (EPC ratings).
• Landlords might be required to upgrade properties to a certain standard (e.g., EPC rating of “C” or better) or face higher tax rates or fines for energy-inefficient properties.
As someone who is related to a wretched politician, I told people what was coming 2 years ago. The governments Moto is “Why should we build & make when we can squeeze & take.”
Conservatives put Section 24 in place not Labour. Section 24 was introduced by prime minister David Cameron and chancellor George Osbourne as part of the 2015 Finance Act. It was not Labour. When labour was in power they did not bring in anything like Section 24 for landlords.
just wait and see what happens after the budget
@@mbb05jb Let's wait to see in Autumn Budget. But with the housing crisis they may perhaps improve the planning process. Let's wait and see.
@@sofinaaghios If they can't control migration, then freeing up planning is not going to move the needle. the housing stock decreased in real terms by 0.6% with the net migration we are currently experiencing
Labour did not introduce S24 it was the tories
The editing and flow of this video are top-notch. It’s rare to find such a well-produced video that balances information and entertainment so seamlessly.
Section 24 in the context of property tax in the UK refers to changes in how landlords can claim mortgage interest tax relief, which was introduced by George Osborne, the Chancellor of the Exchequer, in the 2015 Summer Budget under the Conservative government of David Cameron.
Limited companies are not the answer for landlords who don’t have other jobs and can keep total profit after all costs below the higher rate tax threshold. Trying to take income from a limited company tax efficiently is not as easy as some would think and can lead to double taxation factoring in corporation tax and personal tax rate. Limited companies are not a one size fits all this is poor advice ALL budding landlords should get proper tax advice before jumping into a LTD company structure just because someone on RUclips tells them to.
Try and make some sense, what is the Tax Threshold now? Also how will you raise finance in the first Place. With all the Aml checks going on.
Good guest, this lady could save you big time, learnt alot how some avenues are riskier than others n can dig a hole for yourself......😊
At 8 Min 26,
Amy accused Labour of introducing Section 24,... And I was thinking it was the Conservatives?
Amy, not much of a Tax Queen.
@@matrixman1947 Yep.
Great talk saj I started off with a holding company and then an spv for btl purchases but had so much trouble with lenders not wanting to lend to a company owned by another company so ending up shutting it did you have similar issues
This is what I see, lenders do not like Holding companies. Is there a way around this?
The tax avoidance mentioned is for property 118 who where served with a dotas , stop notice becouse they were advising that Yiu could pull out your equity and give it to your ltd co as a director loan which u could get back later which was questionable however the Rest of the incorp relief advise is correct and well documented in HMRC manuals . Yiu should have mentioned this part of the so called avoidance scheme comments
Does anyone have any comments on the Tax4Landlords approach.
It's not a good idea for her to mention anyone specifically
Fantastic video and I’m going to save this to my playlist right now for others to learn from. I like paying taxes personally because it’s such a good feeling knowing you’re doing what’s right for your country. I’m going to get stick for this comment ha ha.
At 9:55 in to the video, you found the answer to, why? Big corp want to own it. Doing the same with farm land, make farming not viable through red tape, then buy it up!
Great work for such an informative video
Thinking outside the box, I have a question. Can the tax problem be solved by using a business loan to purchase instead of a mortgage? It does look as if that is a possibility for those who did not sell their rentals into ltd companies. I do believe that you could claim all of the interest. This is what I got from a search...
Interest paid on loans taken out by businesses is a deductible expense from your final profit or loss figure when your tax bill is calculated. The loan interest can only be deducted from profits if the loan is exclusively for a business purpose or a property letting
Did I hear the woman correctly? Did she say that it was the Labour Party that introduced Section 24, i.e., that Income Tax relief on mortgage interest payments would be given at a maximum of 20%, rather than at the marginal rate of Income Tax paid, so higher rate taxpayers, ie 40% and 45%, would suffer, if the properties owned in their own names?
I could have sworn that George Osborne brought this in!
PS He did!
If she got this basic fact wrong what else is she saying is credible. Saj is however right large corporations are moving in and will get tax breaks to do so.
@@Angelo-325I guess what we must do is to professionalise ourselves and scale up our operations so we can compete with the new big boy entrants.
Irrelevant, what is important is understanding tax not which politician introduced the tax
@@MRW515 I can see where you are coming from, but they use the erroneous fact as a prop to support their claim thaypt Labour will do even worse, based on somebody else's track record!!
@@MRW515 Not when they base their paranoia on a Labour track record which they just imagined in their febrile minds!
Best having property in Ltd Company if no other income? I thought the other way round, best if have other income?
@@paulgerrard123 Each individual is different so this is not tax advice per se.
The problem of holding property investments in a limited company is how to extract the profits? The profits are first charged to Corporation Tax. Then, if the owner extracts a salary, they pay Income Tax and NICs. if extracted as a dividend, then Income Tax is payable. The general rule if nothing better interferes is to own property initially in a personal name up to the limit of and remaining a Basic Rate Income Tax payer, so that Section 24 curbs on mortgage interest become irrelevant. Beyond that, then to own within a limited company makes sense.
@@johnporcella2375 Exactly, so how can she say this?
Salary and pension deducted before corporation tax. Dividends after corporation tax at lower rates(currently) than income tax. There are all sorts of tax writes you can do in a limited company that is not available when the property is in your own name.
@@seanmurray8051 If the investor is a Basic Rate Income Tax payer, then, unless there are other pressing reasons, the first thought should be to hold in one's own name, avoiding the extraction of profits problem.
I think that was just a slip of the tongue
Very interesting. Thanks for this.
Besides a few slips I think she's good. But why do all these "professionals" keep going on about section 24 not applying to ltd companies as if it's some kind of weird mistake. Well the 20% reducer is to match 20% basic rate, there is no concept of basic rate for ltd companies, and unless they changed the corporation tax rates only for property companies it wouldn't make a difference (or hardly would). So it makes more sense to worry about whether or not they'll increase the corporation tax rates only for ltd property companies. Unless of course you think they might restrict the relief on interest to a much lower level than 20% which would be even more ridiculous.
Tories with George Osborne brought in section 24 NOT Labour.
Also, in limited company ts the ineterst part of the mortgage NOT the whole mortgage.
Does anyone know what the difference is between the 118 structure and the ‘hybrid structure’ using an LLP by the likes Tax 4 Landlords?
I cannot see any government bringing in section 24 into companies as lots of large financial entities own large property portfolios and it would do more harm than good.
I want section 24 to be introduced to Ltd companies, it would be great, pay tax at 19% and get a 20% tax reducer, what's not to love lol
Heading for 50% of GDP in tax🙄
Viewers expect the guest Amy Richardson to provide sound Tax advise, but to start by a wrong piece of information on the very tax subject itself is not encouraging. Section 24 of the Finance Act 2015 was introduced by then-Chancellor George Osborne and Prime Minister David Cameron Both are under the Conservatives. Labour was not in government for the last 14 years.
Hidden agenda agreed
Try getting finance on btl props with a group structure, lenders are not intt
@@rogerpoolman6387 Nothing stopping you getting a long mortgage term when the limited company is not in a group structure, and then the day after the mortgage is paid to the company, add the company into a group structure by the usual means.
I don't believe they will touch the property ltds. This would damage too many of themselves and their friends. And the " foreign" investments.
As a consequence, it would damage Property prices thus banks Businesses... and the Banks don't like that. Overall, attacking the big guys never happens. Too Naive to think otherwise.
Conservatives brought in section 24 NOT Labour - why propagate this myths?
She obviously mispoke
@@tobex1991 And the interviewer agreed or at least did not correct her!
@@tobex1991 Question would be what else did she say that was wrong?
Yes Tories under Osborne. This is where the assault on landlords started of course Labour will be even worse they’re ideologically wedded to hating landlords and the fact that tenants will end up worse off in the long run won’t even register. Unless their great plan is to rely on the big corporates like Lloyds taking over then the PRS will be decimated.
There’s no way Section 24 could come to limited companies this is a vacuous argument as all Limited companies can offset profits against debt making some distinction just for property business’s would be ludicrous.
Well more then half of the world can be considered as tax havens compared to UK tax . No wonder people who have business are leaving because it doesn’t matter where they berried you it matters how you live.
Great interview as always Saj.
Is Amy on FB or Instagram, or a link to her business on google please?
IG: propertytaxqueen , linktr.ee/flowxadvisory
Best to NOT have a limited company if someone's income is from property income only and less than £50k approximately. Isn't it better to be in personal names. Or am i wrong?????
@@sofinaaghios As a general rule of thumb, you are correct.
@@johnporcella2375 thank you for replying.
@@sofinaaghios Best not to split an infinitive!
You will own nothing and be happy...
imagine being mugged with your hands tied behind your back...
Yes that is what it feels like
What her contact details urgent requirement om tax
linktr.ee/flowxadvisory
linktr.ee/flowxadvisory
IG: propertytaxqueen , linktr.ee/flowxadvisory
😂😂😂😂😂 they have lost the plot! Time for revolution i think. Hold on, they have money i think. King just got pay rise! Despite fact, that 1 in 5 ppl live in poverty nowadays 🎉🎉🎉
section 24 rules are and have been in scotland for years and hasnt realistically reduced the number of private rentals now the highest since the 70s the recent higher rate of interest did more damage to those badly advised with mortgages they cant pay if the property is empty even for a short time but property is an investment and comes with risks those that need high mortgages should not invest in the rental property market neither will the tax changes kill the market for most people who fall under or near to the higher tax rates i was a fund manager for over twenty years in all markets but as approching retirement i no longer wish to eat sleep investment analysis so now have a an eleven property portfolio continually let providing myself and my wife an income in region of 7.5% plus around 140 to 150k combined i dont grudge the tax charges as income as that is what it is i dont know many landlords planning to sell ever as there is little thats as secure with that return without serious involvement and increased risk in managing your investment
S24 has been around in England for years too, 7 years to be exact and it has been a reason for many landlords to sell up. I'm pleased to hear that you are happy personally with your tax position but I disagree with your general assertion that tax is not a massive problem and that it's fair. If you mean CGT is income then you are almost insanely wrong. 1)re section 24 resulting in some landlords being taxed over 100% is ridiculously unfair, 2) re CGT - capital growth which requires equity to be at risk should not be taxed at income tax levels
Index funds offer better returns and require less effort than property
@@immers2410 true but property is still the fastest way to raise capital. 😂
a lot of clike bate here More taxes will come but none of us know for fact lets wait for halloween