Time we switched to a simple non distortive land value tax so landlords don't have to fiddle the system to minimize bills, improvements should never be taxable.
Interesting video Rob. Arent you forgetting one of the most tax efficient strategies of all though? Correct me if im wrong here. But, if your buying the property through a limited company, then the money that you used to buy the property is classed as a directors loan. Therefore any profits from the company can be paid back to yourself as a directors loan repayment - completely tax free.
@@Gilly-gx8rt yes thats right, profits incur corporation tax. But from these profits you can pay yourself completely tax free as a directors loan repayment. I would always do this before paying yourself a salary or dividends for example, which will be taxed.
Really good video mate. I would love to know your opinion or anybody else's reading this on what the most tax and cost efficient way is to move a buy to let property from my personal name to a LTD company. From my understanding I would have to sell the property to my company at market value which will incur legal costs, stamp duty for the LTD buying it and even personal capital gains tax if the value has increased for the property. Once you add all that up it just doesn't seem worthwhile. That would easily add up to almost £15-£20K. Not to mention the mortgage product fees are much higher for LTDS.
So, let me get this straight. We buy a property, choosing to buy in a ltd company and bearing the extra costs and hassle that come with that (including the often over-looked massively higher mortgage costs, maybe SDLT etc), and we then pay the money into a pension, which we could have done anyway without a company. lol I do appreciate the videos, ignore me. I know you're giving free information, and it is generally helpful :)
I used to think exactly the same thing as you but at age 32 it finally clicked for me. Your pension is a tax efficient way of investing. You will be taxed on the money that you don't put into your pension.
@@williambramble05 Yes we all know that, but we want to enjoy the now because whilst trying to avoid being "morbid" we don't know if we'll be here in however many years. Bear in mind you can access a private pension from 57 though which some people may not relaise.
A really useful video, thanks for sharing. In going to speak to an accountant but wondered, is there a way to keep the BTL profit in the company to purchase a new property and defer tax for a year or two? Thanks.
