Gresham Street Partners

Financial services

Gresham Street Partners

Tax savings for Landlords and those considering developments

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Tax savings for Landlords and those considering developments

Do you know anyone who owns Buy-to-Let properties? Properties they rent out? If you do, this could be hugely, financially, beneficial to you.

About this event

Christopher ColeridgeCole was a member of the Chartered Insurance Institute before leaving the industry after 40 years to become a fiduciary trustee – that means pushing people in the right direction concerning their property tax affairs

Christopher specialises with buy-to-let landlords. He has been doing this for seven years, working with a top-30 UK Tax Planning accountancy practice. He will be explaining how you can not only save considerable income tax, Seriously mitigate your capital gains tax liability, protect against inheritance tax but also extract the entire net value of your company assets out of your business, entirely tax-free “

https://www.eventbrite.co.uk/e/mid-surrey-wealth-investing-network-with-christopher-coleridge-cole-tickets-319706098547

Impending Tax changes for Landlords Post-Covid next financial year in April

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Impending Tax changes for Landlords Post-Covid next financial year in April

I have been sent by our accountants the last pre-Christmas “Morning Account“, a regular accountancy news-brief, this month about the potential tax implications Post-Covid from next April.

As you will sadly see all our forecasts for Capital Gains increases together with the introduction of a Wealth Tax are being openly promoted in the press now.
* Wealth tax: I am alarmed to see that it is likely to start on properties of £500,000 – and that it might be as high as 5% of gross value. As you will see from the comments from the head of Grant Thornton, it is also highly unlikely to stay at a one-off – most taxes do not as you know.
* Capital Gains Tax: I think everybody is accepting that this is going to run parallel with Top Rate Tax, relative to each individual property landlord/investor’s individual rate of tax. Whilst there is a Conservative government that is likely to stay at 45% – but do you really think the Tories will still be in power at the next election?
* Welsh introduce a ‘sales tax’: I wasn’t aware of this potential Draconian step. It would seem that the LTT(Land transition tax) which must be Wales’s equivalent of an English sales tax, is being introduced at 1% per hundred thousand pounds. Starting at property values of £160,000, this is going to rise by 1% per hundred thousand up to property values of £1.6 million i.e.16% per property sold! Horrendous!
* Just to put it into perspective, every property sold of £500K it will cost the Seller £25K; for properties of £1Mn a charge of £100K; for properties at £1.6Mn & above, he will loose £256K !!! And this will surely be the pre-cursor for Sunak to think of something similar for English property🤮!
What must surely now be perfectly evident to all our clients, readers and those that we are put in touch with, is that the buy-to-let landlord is going to be the recipient of the brunt of the chancellor’s tax reclaim for those billions of pounds he has spent on Covid.
Solution: move now, listen to us. Gresham can get your properties into a company preferably before the start of the next financial year.
Do not let yourself get into the position of being forced, either because of Banks’s mortgage restrictions or simply because of necessity, to have to sell. Or – your whole Property investment strategy will have been entirely pointless.

𝗣𝗢𝗦𝗧 𝗖𝗢𝗩𝗜𝗗 𝗧𝗛𝗢𝗨𝗚𝗛𝗧𝗦 – 𝘄𝗵𝘆 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗴𝗲𝘁 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝗼𝘂𝘁 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻 𝗻𝗮𝗺𝗲

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As if the government debt wasn’t going to be bad enough, the banks are going to severely tighten up on the lending requirements, their margin calls, their stress test levels. Re-financing is going to become significantly more restrained. But that is just the tip of the iceberg.

Back to government debt: the billions Sunak has to recover can only be got through taxation. So firstly, be very fearful of a WEALTH TAX. The politicians are talking of a tax on the assets of the Rich: sadly the ‘Rich’ is judged as those with more than two properties!! Get your properties out of your name into a company – now.

Clearly a wealth tax would not be a vote loser. To introduce a wealth tax on the BTL industry is being openly talked about. So this is another reason to get properties out of one’s own name because it would be nigh impossible to tax corporately-owned property – a wealth tax on Peter Jones, John Lewis or the owners of Harrods?! 🤣

But sadly that’s not all. The Chancellor has just ordered a review of CGT rules, in particular, “how gains tax rates currently compare to income tax rates“? A senior analyst at AJ Bell said “the timing of such a review could spark scares of a CGT raid, aligning CGT and income tax rates“ – & then with a wealth tax imminent on assets?

Targeting the rich to pay: people with two or more properties are regarded as ‘the rich’! If you are a BTL landlord you shouldn’t be too keen on getting out of COVID because if you own property in your own name you’re public enemy number 1, 2 and 3.

If you currently run a buy-to-let business as an individual and you think you are going to be affected by the pandemic, our team at Gresh Street Partners can help you move your portfolio into a limited company. We also recommend discussing your current situation with a Chartered Tax Accountant to help you make the right decision.

Do get in touch with us – Email: ccc@greshamstreet.com

Are You A Landlord or Property Investor in the UK?

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The need to re-address the structure of your property portfolios as a result of this dreaded coronavirus has become all the more alarming. The problems landlords face require their immediate attention:

1) Rental problems for tenants: it is becoming blatantly obvious that tenants are struggling. Businesses are being forced to close. Income is being reduced or restricted. Jobs are being lost. The ability to make monthly payments is under severe pressure.

2) Banks issuing margin calls: even a year ago banks started tightening up on their “Affordability Index” for landlords. Some banks started even before coronavirus, issuing margin calls e.g. requiring greater equity. With mortgages reaching term date, lenders are clearly concerned about yet another fall in property values and therefore sufficient affordability within their agreed margins.

3) Rates will rise: anyone can see that mortgage rates are really at an all-time low. They only have one way of going, especially after the debt and insolvency that will follow.

4) Tax rates will go up: This all has to be paid for somehow. Whilst the government will issue bonds to keep inflation down, someone has to carry the burden for this seismic government debt that we will end up with after Coronavirus ends.

If this isn’t clear enough, what is? Don’t put your head in the sand – now is the time to act, whilst you can – whilst you’re not being pressured by lenders or governments & before banks really start. Let us help you reduce those overheads, minimise your cash flow outgoings and maintain the tax-efficiency and economic viability of your retirement portfolios.

I have recently joined the Federation of Small Businesses (FSB).

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I have recently joined the Federation of Small Businesses (FSB).

Greetings everyone,

In these stressful times, it is important to maintain as positive an outlook on maintaining a constructive overview for our businesses going forward.  This past week I have had six ‘digital meetings’, by FaceTime & Zoom, some with folk I’ve never met, where the positivity resembled the old British bulldog fighting spirit. Gresham Street Partners is very much open for business. 

I have recently joined the Federation of Small Businesses (FSB) who is a non-profit organisation offering members small business advice, financial expertise, support and are a powerful voice in the UK government. 

The FSB has had a huge influence on making change and influencing policy – recently securing a £940 million reduction in business rates for small firms; a freeze on the VAT threshold as well as on fuel duty. The FSB has also persuaded the Government to adopt a reform package to stop late payments to small businesses. Have a look at their website. They will have much to offer us all in the months ahead…..

FSB – https://www.fsb.org.uk/

As a member, you can attend some amazing networking events; have a look at this video of my own induction with Membership Secretary Piyush at the recent FSB event in Harrow.

New Changes to Capital Gains Tax (CGT) For Property Owners – April 2020

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New Changes to Capital Gains Tax (CGT) For Property Owners – April 2020

If you’re relocating or stuck in a chain when moving property, new changes to Capital Gains Tax (CGT) is coming into force this April (2020). HMRC is ramping up all efforts to grab more tax from property owners!

If you’re in the proverbial chain and you perhaps foolishly, brought your next property without exchanging on your existing one, the claws of HMRC are tightening around you.

The new legalisation will reduce the time you have to actually sell your property – reducing it from 18 months to only 9 months. If you fail to sell your property within this period, you will trigger a CGT bill. Be warned!

That’s not all: The new legislation will only allow you 30 days to calculate the tax owed, report the gain via an online tax return and pay the amount owed. This is a huge change given that you used to have until the next self-assessment deadline of January 31 to submit and pay the tax owed.

These are really significant changes for any of you selling second homes or buy to let properties. Please take note.

Contact our friendly team today for more information – https://www.greshamstreet.com/contact-us/