I need expert buy-to-let UK tax advice for an individual
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I have a buy to let property with a buy-to-let mortgage. The property and mortgage is currently owned jointly with a friend. Soon, I will be remortgaging (raising more equity) and buy my friend out. Also, I recently got married but my wife is a non UK citizen (so while I can't have her on the mortgage product but potentially I can have her as a registered interest in the property with HMRC). Also, I am a high-rate income tax payer in the UK while my wife does not work. So I want advice on best way of minimising my tax + details on amounts I would pay under each option:
Tax considered:
1) stamp duty tax
2) rental income tax on the property (allowing for future deduction of interest allowance)
3) capital gains tax whenever we come to sell the buy-to-let.
So as mentioned, I know the basics and need advice on the more complex options I have available to identify the best one. Questions/options include:
- moving whole/part of the property to a corporation,
- keeping property in my name but with wife as an interest holder only (will this also trigger stamp duty tax if done later)
- go with sole name due to restrictions,
- buying out my friend will trigger stamp duty but what's the consideration? Is the mortgage amount included? Can I take him off the mortgage now and then change property (at Land Registry) in my name after 5 months to avoid stamp duty,
- which option leads to least Capital Gains Tax in the future at the time of selling (buying out my friend will be at a higher price than what we bought it for a year ago so it will trigger CGT for him).
Thanks
Javed K.
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Is the output from this Javad desired to be a written report based on the facts?
Javed K.18 Oct 2016I am flexible on this - e.g. a formal report, an email or a call to discuss all the info would be fine.
A call maybe best (followed with a very brief summary note of the call) in which I can ask Qs. I assume this will be a lot quicker than a report and so will be cheaper.Francis E.18 Oct 2016It could be cheaper but the sensible way for a practitioner to approach this would be for them to ask the questions to understand the specifics of the situation, clarify the understanding in writing to you and then proceed to advise.
We are not Encyclopedias Javed, sometimes the best solution is found by standing back from a situation, researching and only then appraising the most effective solution..