You can only deduct the SDLT on an investment property when you sell it (i.e. you claim it as a deduction when you calculate the capital gains on the property). Council tax is deductible when you calculate you rental profit each year for your tax return
Also only 10% CGT if it’s a furnished holiday let when you sell. Business asset disposal. Only works if you have one additional property or are selling all of them at once.
So if an investment property has been used as airbnb then 10% CGT applicable? What happens when the property was used as standard BTL in the past but it becomes airbnb say 9 months ago?
@@nikkion2140 I think so long as it has been offered for rent / rented for the minimum weeks that would get you small business rates relief rather than paying Council tax. Im not sure if 9months would be enough or not. I’m not an accountant or tax advisor so I would check this out for your situation.
Great video again, very useful and informative, especially for someone like me who is currently building a foundation of knowledge on property investing! Thanks 😀
Hey, I have a Tax question. Say I own Company a company "Alan's properties" and make £49k profit And I also own a company "Drivers properties" and make £49k profit. I've sneakily got around paying the additional Corp Tax. :) ... nope, because of CTM03570 - associated company. But what if Company A was jointly owned (50/50) by me and Bob, and company B was owned by me and Bill? its a bit unfair to Bill and Bob if their share was taxed at 25% not 19% because I partly own the both companies. Also, if I own a second hand car dealership that makes say £249,999k, does my unrelated property company, of which I only own half, and it makes £40k, does it all get taxed at 25%?
looking to buy a flat to invest in, this is in scotland, 6% tax now in scotland, would have to pay nearly 6k on a flat at 95k, probably puts an end to buying that flat as I dont have an additional 6k, nuts
Can you change your residential house to a buy to let and then move to another residential property and not pay the investor stamp duty on it but residential stamp duty ??
I'm not sure if you can do that simultaneously, but you can certainly change from residential to buy to let and pay no stamp duty. Not many lenders do that so your options will be very limited and might have to pay higher interest in the first five years. I did that with my residential house and convert that into two flats. While i do that i moved my address to my friends house. I haven't bought any residential property yet but nothing can stop me from buying residential property now.
@@michaelrobertbritton I have a buy to let property that I rent out but I want to buy a bigger house to live in and rent the one I'm in at the minute out so do I pay more stamp duty or can I put it straight on a buy to let mortgage ?
@@JamieYork This was confusing to me as well. I was digging gov website for 38% as I thought I've missed something. Could you kindly edit the video or at least update the description to point it out.
This isn't 100% accurate so don't rely on this video as advice. For example, not all property enhancements are deductible for income tax purposes. Some are only deductible when you sell and pay CGT
There's lots of costs that people don't claim for. Biggest myth I hear is that you're "taxed on turnover". From insurance, council tax, utilities, repairs and maintenance, stationery, mileage for visiting your properties or scouting new ones. There's loads of expenses you can claim for just like any other business.
I had enough of this crazy residential landlord stress with tenants and government council rules etc. I rather invest in commercial property It's easy no hassle dealing with tenants I don't get phone calls about repair they even pay my landlord insurance.
Hey Jamie. Can you claim stamp duty against ur tax bill in the first year? And also if it’s empty , council tax?
Great video,
Cheers again 👍
You can only deduct the SDLT on an investment property when you sell it (i.e. you claim it as a deduction when you calculate the capital gains on the property).
Council tax is deductible when you calculate you rental profit each year for your tax return
@@michaelrobertbritton thanks Michael that’s great info. Cheers, Ian
@@bgate1984 I'll send over my fee 😉👍
@@michaelrobertbritton is it tax deductible? 😉
@@bgate1984 it is. I'll happily send you a fee to wipe out your tax bill if that helps 😂
Amazing Video Jamie ! Please, keep up with such in depth educational videos which most of the concerned community are missing !
Great advice. A must watch for anyone considering BTL, but as a caveat advisory; always consult a certified
Very true!
Also only 10% CGT if it’s a furnished holiday let when you sell. Business asset disposal. Only works if you have one additional property or are selling all of them at once.
Love it! Thanks for adding value!
So if an investment property has been used as airbnb then 10% CGT applicable?
What happens when the property was used as standard BTL in the past but it becomes airbnb say 9 months ago?
@@nikkion2140 I think so long as it has been offered for rent / rented for the minimum weeks that would get you small business rates relief rather than paying Council tax. Im not sure if 9months would be enough or not. I’m not an accountant or tax advisor so I would check this out for your situation.
Great video again, very useful and informative, especially for someone like me who is currently building a foundation of knowledge on property investing! Thanks 😀
Glad it was helpful! Thanks for watching!
Great Video Jamie, Correction however you don't pay 38% CGT as higher rate tax payer on property - it's 28%
Whoops! Great spot!
Hey, I have a Tax question.
Say I own Company a company "Alan's properties" and make £49k profit
And I also own a company "Drivers properties" and make £49k profit. I've sneakily got around paying the additional Corp Tax. :) ... nope, because of CTM03570 - associated company.
But what if Company A was jointly owned (50/50) by me and Bob, and company B was owned by me and Bill? its a bit unfair to Bill and Bob if their share was taxed at 25% not 19% because I partly own the both companies.
Also, if I own a second hand car dealership that makes say £249,999k, does my unrelated property company, of which I only own half, and it makes £40k, does it all get taxed at 25%?
Great question. The HMRC haven’t even figured that out yet I’m afraid
I do like loopholes its finding the right people that know how to use them tho thats a problem
That is very true! Got to be careful!
looking to buy a flat to invest in, this is in scotland, 6% tax now in scotland, would have to pay nearly 6k on a flat at 95k, probably puts an end to buying that flat as I dont have an additional 6k, nuts
Can you change your residential house to a buy to let and then move to another residential property and not pay the investor stamp duty on it but residential stamp duty ??
I'm not sure if you can do that simultaneously, but you can certainly change from residential to buy to let and pay no stamp duty. Not many lenders do that so your options will be very limited and might have to pay higher interest in the first five years. I did that with my residential house and convert that into two flats. While i do that i moved my address to my friends house. I haven't bought any residential property yet but nothing can stop me from buying residential property now.
Just speak to your current mortgage provider and ask for permission to let.
No you can't. You have to declare when you buy a second home and pay the SDLT at that time.
@@michaelrobertbritton I have a buy to let property that I rent out but I want to buy a bigger house to live in and rent the one I'm in at the minute out so do I pay more stamp duty or can I put it straight on a buy to let mortgage ?
Just put the property you want to rent into an SPV then it’s the company’s property, not yours and you can then buy a resi on normal stamp duty rates
Awesome 👌 👏 as always.
Thank you so much 😀
ADS in Scotland was 4% instead of 3%. It's now 6% ..... yay?
Dayum!
''Just don't Die!'' haha
True though ahah!
Hi thank you for wonderful video
Would you recommend an expert advisor thank you?
Cheers for watching mate! I would defiantly recommend it yes!
you're video are amazing 🤣
Glad you like them!
Thank you
You're welcome
advisor first.
Yep!
Think you mean 28% for capital gains not 38%
Did I say 38… oops!
@@JamieYork This was confusing to me as well. I was digging gov website for 38% as I thought I've missed something. Could you kindly edit the video or at least update the description to point it out.
😊
👍
You were right it was boring as fu$k Jamie 🤣 sorry mate
Haha, I’ll take it 😂
This isn't 100% accurate so don't rely on this video as advice. For example, not all property enhancements are deductible for income tax purposes. Some are only deductible when you sell and pay CGT
There's lots of costs that people don't claim for. Biggest myth I hear is that you're "taxed on turnover". From insurance, council tax, utilities, repairs and maintenance, stationery, mileage for visiting your properties or scouting new ones. There's loads of expenses you can claim for just like any other business.
@@FONASDeadlock completely agree. From my time in tax practice people try to claim everything or go the other way and significantly under claim
I thought his use of enhancement was unfortunate. I thought most enhancements were treated as capital.
He should have really said replacement.
Good feedback there. Thanks for the support :)
Anyone else struggling to get onto lendlord?
I had enough of this crazy residential landlord stress with tenants and government council rules etc.
I rather invest in commercial property
It's easy no hassle dealing with tenants I don't get phone calls about repair they even pay my landlord insurance.
Extra comments in the video clutter the important information. You will get a thumbs down for wasting my time.
Just read the tax guidance notes. No joking around in there.
Thanks for the feedback :)