3 ай бұрын
4 ай бұрын
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@house9464 18 сағат бұрын
Salary B4 tax if your rents are only 20k then I am assuming the salary isn't coming out of the profits therefore implying this is a work salary from PAYE?? If this is the case then you've already paid tax on it and in your example your not taking away the tax portion in your computation IE a pre tax salary and rental income = 56k putting Yiu in the higher tax bracket before you've even started ..
@shamolahmed2832 Күн бұрын
This is so useful. I’ve been looking for a video and how to guide for awhile and this was spot on! Cant believe there’s not more videos on this - thank you so much. Just need to finalise my sale have 2 months yet
@DavidSmith-do6ji 2 күн бұрын
Thank you, I must say I didn’t struggle to understand what you’re explaining.. pretty clear to me considering you’re talking accounting 🙈🤣
@James__bond007 2 күн бұрын
i know this is not property business related but lets say i had a dine in establishment, and i was expecting to make a profit of 50k but instead i decided to buy a 40k art piece to hang in the resturant, leaving 10k profit. Would i be liable for the 50 or just 10?
@ashwincbhindi7542 10 күн бұрын
Can you do a similar calculation without any salary ? My net property income is £57000 and no other income
@kimberleyshapcottpropertytax 10 күн бұрын
I will look at doing something with sole property income when I am recording next and get it onto the channel in the next few months.
@harrietsote5707 11 күн бұрын
Can I get equity from my current resident property and transfer the property it to a ltd at the same time?
@kimberleyshapcottpropertytax 10 күн бұрын
You would be able to however there would be stamp duty payable and depending on the position capital gains tax to be considered.
@ammadhabib7099 12 күн бұрын
Thankyou Kimberly, this was very useful for me .
@kimberleyshapcottpropertytax 10 күн бұрын
You are so welcome!
@artist1020 14 күн бұрын
Hi Kimbderly, another great video. Cab i set up Holding company now and then set up other subs at a later stage as I go onto to do other strateries in my property biz, e.g. Rent to Rent SA etc?
@kimberleyshapcottpropertytax 10 күн бұрын
You would be able to add subsidiaries in the future.
@artist1020 14 күн бұрын
Hi Kimberly - that was a very thougher and informative presentation. I am setting up a Deal sourcing and Deal pasckaging limited company and will look to your channal in future. Well done.
@kimberleyshapcottpropertytax 10 күн бұрын
Glad it was helpful!
@christopherbell660 17 күн бұрын
Is stamp duty a cost we can claim as an expense?
@kimberleyshapcottpropertytax 10 күн бұрын
This is an expense that will be taken into account on the capital gains tax calculation.
@jamesrushe3442 17 күн бұрын
AIA guidance states "tools such as ladders and drills". As a limited company, can i claim back if i purchase a table saw in our first year as this is necessary for some carpentry tasks? It will be used solely for business tasks
@kimberleyshapcottpropertytax 10 күн бұрын
Yes, absolutely
@roscoenash1003 18 күн бұрын
Can you not HMRC to link to you, I've actually learnt what to do and safe myself stress for the future. Would donate but barely breaking even after so many expense rises, Thanks
@kimberleyshapcottpropertytax 10 күн бұрын
Thanks for the feedback. I'm glad you found it useful.
@nikkion2140 18 күн бұрын
Thanks for this valuable point.
@kimberleyshapcottpropertytax 10 күн бұрын
My pleasure!
@nikkion2140 18 күн бұрын
Can you gift to a Trust which only comes into existence later (sorry for asking "stupid" question? The idea is "analogous" to gifting to future grand children etc.
@kimberleyshapcottpropertytax 10 күн бұрын
You cannot gift to something that is not in existence at the time of the gift. Depending on the value there may be lifetime inheritance tax to be paid if the personal allowances are used up. Therefore I would suggest speaking to a tax professional to check what you are looking at doing before taking any action.
@nikkion2140 18 күн бұрын
Does 7 year rule apply to gifting to a Trust?
@kimberleyshapcottpropertytax 10 күн бұрын
The 7 year rule does not apply to a trust and there may be immediate tax due on gifts to trusts depending on the tax position of the person.
@AlHR23 18 күн бұрын
Thanks for the informative video. Would it be possible to leave the property to the children in a trust and continue living there without facing IHT?
@kimberleyshapcottpropertytax 10 күн бұрын
Depending on the value of the property, there maybe tax charges on the gift to the trust. Therefore it is unlikely to work. I would suggest speaking to a tax professional if you are looking at doing some planning to minimise inheritance tax implications.
@graemehoward-kinsley9083 18 күн бұрын
If parents gift a jointly owned second property to daughter and only one parent survives the 7 years does any PET return to estate?
@kimberleyshapcottpropertytax 10 күн бұрын
The 50% from the person who did not meet the 7 year rule would be clawed back. However, the tax charge will depend how many years through the period would determine the tax on the 50% of the gift.
@guymachin7287 22 күн бұрын
Hi I've just set up a limited company to build a property portfolio,I have a house on a mortgage and want to move it over to the limited company on a BTL. I have a low credit score and have some defaults and it's crushing me with interest rate implications, is there a way I can get around this, I don't know what to do I don't know who to speak to regarding bad debt? Please can you help me? Thanks Guy
@kimberleyshapcottpropertytax 10 күн бұрын
Depending on the value of the property there would be costs to move it to the limited company which may not be advisable. I would suggest speaking to an Mortgage Broker to see what options you have available on the property.
@dfaulkner9602 25 күн бұрын
Great vid! Well done
@kimberleyshapcottpropertytax 10 күн бұрын
Thanks
@mikeroyce8926 25 күн бұрын
Thanks for the video Kimberley. Is Hammock already compliant with Making Tax Digital?
@kimberleyshapcottpropertytax 10 күн бұрын
Yes it is and is ensuring that it is keeping up with the ever changing making tax digital world.
@Markuliss 27 күн бұрын
How do you actually claim this on the return - not sure it lets you claim any fianancial costs?
@kimberleyshapcottpropertytax 10 күн бұрын
Box 26 on the tax return is where you record these costs.
@AIHCU 29 күн бұрын
Hi Kimberley - can you use PPR if you purchase a new main residence before selling your original main residence and sell your existing main residence within 9 months of purchasing your new main residence?
@kimberleyshapcottpropertytax 10 күн бұрын
Yes. There is a 9 month period allowed on properties that you own.
@drjanemccartney Ай бұрын
Thanks always useful
@kimberleyshapcottpropertytax 10 күн бұрын
you are welcome.
@sureshdharmayat7222 Ай бұрын
I bought BTL property for190000 , interest only. I have paid off 40000£ . Can I include interest on 40000 £ with interest on 150000£ as mortgage interest or not?
@kimberleyshapcottpropertytax 10 күн бұрын
Any repayment of capital are not allowable for tax as this is paying off the loan and not a cost to you i.e. an expense of the property business.
@matthewherbert5940 Ай бұрын
What about Ltd capital losses?
@kimberleyshapcottpropertytax 10 күн бұрын
These are reported on the corporation tax return which needs to be filed each year to HMRC. They will be included each year so no specific reminder needed for logging them with HMRC.
@AvinashSingh-vj3rk Ай бұрын
❤
@kimberleyshapcottpropertytax 10 күн бұрын
Thanks
@lumbarsupport Ай бұрын
You imply that the property was sold in 23/24, but when was the property purchased? If the property was purchased in 2018/19, surely you can set off the total gain against the total of each of those 5 years CGT allowance, otherwise that would be grossly unfair, given 5 years of inflation might mean that there is no gain at all in real terms
@kimberleyshapcottpropertytax 10 күн бұрын
You only have one personal allowance in the year that a property is sold and you do not collect annual allowances each year over the period of ownership. Based on your comments it is an unfair system as those who own for longer periods of time will have larger gains to pay tax on and inflation is ignored.
@noble4300 Ай бұрын
Great video
@kimberleyshapcottpropertytax 10 күн бұрын
Thanks
@dubstar14 Ай бұрын
Bless you Kimberley! I've been tearing my hair out for days trying to get my head around calculating PPR and you explained it clearly in 5 minutes.Thank you so much.
@kimberleyshapcottpropertytax 10 күн бұрын
You are welcome.
Ай бұрын
What for to use to claim back stamp duty for uninhabitable property if you have already paid and can you complete form online?
@kimberleyshapcottpropertytax 10 күн бұрын
You can write to them with the evidence and request a refund.
@MrYossi2010 Ай бұрын
Firstly thanks for taking the time to upload your videos. I personally found the issues you discuss informative. You gave an example of someone who owns a pub, and splits various aspects of the business into separate companies. Artificial separation which can be viewed a something dodgy. My question is that I have heard of people doing this type of thing for the purpose of asset protection. You have a hospitality business, but you separate the business so that if you are sued you have protection. Are you allowed to separate your companies for asset protection. If you do this are your assets protected?
@kimberleyshapcottpropertytax 10 күн бұрын
There is a balancing act between doing something for asset protection and for avoiding or minimising taxes. The associated company point is that by having multiple companies, you will have potentially more tax to pay due to how it works.
@johnporcella2375 Ай бұрын
What does it mean when you say that CAs can only be claimed once? If the former owner of a FHL has claimed one-quarter of the CAs available, does that mean that we cannot claim the balance because they have claimed CAs already? Or can we claim those unused CAs? I know that there is a tax case where some CAs were possible to be claimed in an HMO.
@kimberleyshapcottpropertytax 10 күн бұрын
If the owner has already claimed part of the allowances, as part of the legal process you need to check what has been claimed to see what is still available to claim and you cannot claim if they have already claimed them all using the annual investment allowance.
@thatsallfowkes Ай бұрын
Thanks Kim, very useful. If you can give some feedback to our situation I’d be very grateful. My wife and i are going to travel full time in November. We have just rented our house out on a repayment mortgage that expires next April, should we go to buy to let on next term? We were not aware of the whole tax situation, thinking now maybe we should have sold up and invested a chunk of equity into stocks? If it’s going to cost us more than it was before. I guess after November when we have no incomes travelling the tax should be zero. But then there is CGT when we sell. Between now and Nov I’m a 20% tax payer and my wife is 40%. So the first 5 months will cost us. Any advice 😊
@kimberleyshapcottpropertytax 10 күн бұрын
You will need to speak to a mortgage broker to see what options you have with the mortgage. You will need to complete a tax return for the period that you rent out the property which will be for 2024/25 tax period. Depending what other income you have you may limit the tax payable if it falls within the tax free allowance. You will have some Capital Gains tax on disposal, however if is for a short period this should be insignificant for the gain and you capital gains personal allowance of £3,000 may cover it,
@user-mx9xq9iu3e Ай бұрын
Hello great video What to do in my sytuation I thinking of sell my own house in UK I bought it 10 years ago with my wife . First 4 years we were living there and now we are renting out ( last 6 years ) because now we live abroad , so we are non residence . How to proof improvements ? house was empty no gas instalation , no carpets , olw windows when we bought it have all old photos. What to do after sale ? will we have to pay cgt tax? House has no mortgage. Any 5 year rule aviable because we are not planning to come back to uk ?
@kimberleyshapcottpropertytax 10 күн бұрын
This is quite a complex scenario due to the overseas nature and question of residency. I would suggest speaking to a tax professional to get specific advice to ensure you minimise any tax that may be payable on the disposal.
@Marc-em6fv Ай бұрын
Hello great video. Just to confirm I do Airbnb on an interest only mortgage. So I definitely can claim the full amount for each month not just 20 percent? Much appreciated
@kimberleyshapcottpropertytax 10 күн бұрын
At present you can claim the full amount of your mortgage interest as an allowable expense. This is changing from 6 April 2025 however we have limited information on these changes at present.
@oluade7361 Ай бұрын
First to be here❤
@kimberleyshapcottpropertytax 10 күн бұрын
Good job.
@Cool_Kids_Animate Ай бұрын
Hi, Great video thanks. Quick question, if you use the 325k allowance within the 7 year rule does this just mean you don’t have that allowance once the person gifting has passed away? Or is there a fresh 325k allowance? Thanks
@kimberleyshapcottpropertytax 10 күн бұрын
You won't have it when they pass away if has already been used.
@cammyli8954 Ай бұрын
Thank you for your video, may I clarify about the adjusted total income should be the amount exceeding personal allowance or the total income, for the example of 2023/2024, should adjusted total income be 54000-12750 or 54000? Thank you!
@kimberleyshapcottpropertytax 10 күн бұрын
It is the total income not adjusted for the personal allowance.
@cammyli8954 10 күн бұрын
Thank you so much for your kind reply!
@grolfe3210 Ай бұрын
Nice and clear thank you. Two questions follow on from this- How do we record the gift to our children? Would a document confirming the parties, date amount and that it is a gift not a loan cover it? If two parents gift a PET to their children but then say one parent dies after 2 years and second after 7 years is it still exempt? Does the full exemption pass to the surviving parent?
@kimberleyshapcottpropertytax 10 күн бұрын
A simple note in your records is sufficient to record any gifts to children. There would be potential inheritance tax if one of the parents did not survive 7 years.
@jameshenwood373 Ай бұрын
Can the date in which the share were purchased be back dated?
@kimberleyshapcottpropertytax 10 күн бұрын
They cannot and need to be done at the right time.
@jameshenwood2837 10 күн бұрын
Thank you
@dorotawypuszcz377 Ай бұрын
What about renting room out on Airbnb ? Only for few months?
@kimberleyshapcottpropertytax 10 күн бұрын
It will depend how this was done and if they fit the rules as stated on the rent a room relief.
@adeel5762 Ай бұрын
Hi Dear - I have a question please. I want to transfer my existing home (I’m living in it since bought) to my existing Pvt Ltd company (that’s my business too) and let it out. I want to buy a new house and move my family. My company has the funds in business account- since my personal earnings source is my business, I need same funds to purchase new house too. How in this situation I can use company funds to buy new house and at the same time company to buy my existing house please?
@kimberleyshapcottpropertytax 10 күн бұрын
It sounds like your company will need to buy your house on a mortgage to then pay yourself which will provide the funds to buy your new house. It looks like it will be possible and will simply be a matter of timing of the different transactions so they all line up.
@Dan-si9ok Ай бұрын
Awesome video - may need your assistance in setting up a property company soon!
@kimberleyshapcottpropertytax 10 күн бұрын
Happy yo help.
@SenthilkumarVadivelmurugan Ай бұрын
Great video. It is possible to provide similar calculations for a beginners like me to step-in with an assumption of 600 PCM from a property please? I am working too, do I need to add the limited company income + divident to my regular primary salary and file self assessment too? If so, I may move to bit higher tax band right?
@kimberleyshapcottpropertytax Ай бұрын
Great suggestion! I'll get something on the channel soon.
@SenthilkumarVadivelmurugan Ай бұрын
@@kimberleyshapcottpropertytax that will help like new bees like me to jump-in. It's been 2 years after my training without any transactions. Lol. Probably some thoughts on minimum profit considerations in this mountain high interest rates.
@malcolmloveday5679 Ай бұрын
Excellent tutorial. Thank you. When filling in my online self assessment tax return, does the system automatically take these factors into account, or do I need to do some of the calculation myself?
@kimberleyshapcottpropertytax Ай бұрын
I believe it does most for you however you just need to ensure you enter it in the right places.
@andrewdove2303 Ай бұрын
Hi Kimberley, great video - most have no idea of the costs of exiting a property investment company. I think it would be great to see you run through a scenario such as this one which I have contrived... A higher rate tax payer wants to exit their estimated £1,000,000 10 tenanted property portfolio within the next 6 months. They purchased the properties for £500,000 20 years ago, the kids are not interested and they want to retire. They have 2 offers on the table for the entire portfolio. Offer 1 is to buy the portfolio from the company for £900,000. Offer 2 is to buy the limited company but this offer is for £800,000. Assumptions: no debt. How much will the seller end with under up with under each scenario taking into account all taxes? Thank you!
@kimberleyshapcottpropertytax Ай бұрын
Great suggestion. I'll looking at putting some numbers together and going through the numbers on a video in the next few months.
@andrewdove2303 Ай бұрын
With such such huge growth in property limited companies and a harsher environment, we can expect a corresponding growth in companies that need to be exited one way or another. Most investors don't think about exit strategy, but when they do it will be great to have resources such as this video. Keep up the good work Kimberley!
@kimberleyshapcottpropertytax Ай бұрын
Thank you. If there is any additional information you would like to see then please share and I'll be looking at adding additional content about this topic.
@HelaneBrooks Ай бұрын
Hi Kimberley, If I incorporate so the properties are transferred into my existing Ltd Co then look to sell in the future. Will I still be able to claim reliefs on gthe sale if I have previously lived in it before it was incorporated.
@kimberleyshapcottpropertytax Ай бұрын
You will get the relief for living in the property when you sell the property into the limited company. Then you will pay tax on any gain in the company from the value transferred in at to what it is eventually sold as.
@numerouno2532 Ай бұрын
Don't get me wrong, I love the videos and it's great you're sharing this information. I know you're trying to keep it simple, but the cost of the transfer is £180 for the individual, but there is also the other £9k paid by the company for SDLT and legal fees, it's just that you're using finance to pay for it. Sadly the benefits are also minimal as most people don't factor in the interest rate difference between btl as an individual vs a ltd company
@kimberleyshapcottpropertytax Ай бұрын
Thanks for raising an important point. Everyone will be looking at their reasons differently so it will be based on everyone's individual circumstance whether it is worthwhile to make the transfer or not. Any stamp duty that is paid will be an allowable cost when sold in the future however as you say it will be a cost and will increase mortgage payments if added onto any mortgages.
@johnporcella2375 Ай бұрын
Just the one queation. Could you explain why it may be possible to claim back the extra Stamp Duty?
@kimberleyshapcottpropertytax Ай бұрын
As most individuals will be buying a more expensive property in their own name they will be paying an additional 3% on their personal property. When the property is sold into the company, this 3% can be reclaimed by the individual as long as it is within 3 years. The stamp duty paid by the company will be an allowable expense when the property is sold in the future. Check out the video on reclaiming your stamp duty for the eligibility criteria and how to do it on the channel.