It is not how much money you earn from property that matters, it is how much money you keep that really matters
How much property tax will you pay to HMRC?
We have worked with many property investors that invest in the UK. We have many international clients who also invest in UK property and wish to minimise the amount of tax that they pay in the UK and in their own country.
There are many ways in which the uninformed property investor pays too much property tax on their buy to let portfolio
Our property tax specialists at Optimise Accountants work with over 1,000 property investors around the world to save UK property tax.
What tax do you pay with a property investment
There are a number of taxes that you need to consider as a property investor or as a property developer
Stamp Duty Land Tax when you are buying a residential or commercial property investment. It is a common issue that conveyance solicitors use generic HMRC SDLT calculators that costs their clients unnecessary tax
Valued Added Tax on the building itself, if a commercial property investment, or on the materials and labour for the refurbishment. There are many ways in which VAT may be reduced to 5% or 0%
Income tax or corporation tax on the profits made on the property profits, depending on how the property is held. Tax on profits may be significantly reduced using the right tax structure.
Capital Gains Tax when the assets are sold. There are may ways in which CGT may be reduced using allowances and reliefs
Inheritance Tax when you want to pass assets over to loved ones upon death. Far too much IHT is paid over to IHT due to poor tax planning
Getting the right property tax advice that saves you thousands of pounds.
How much property tax will you pay on your buy to let property portfoilio?
Property taxes may be saved with ease with a simple conversation. The issue that many property investors and property developers have is the notion of "you do not know what you do not know". The same applies to accountants and property tax advisors. We love to speak with our clients and the 30-minute pore booked calls allow our property investment clients to load up questions ahead of time.
This allows our property tax advisors to discuss each and every call and then agree on the right tax strategy for that client each and every morning before the day starts.
The tax advisors then discuss the solution with the client and send them after call notes and a recording of the call so that it may be revisited.
It is one thing to earn money as a property investor but what is the point if you give that money straight to HMRC?
We see time and time again where clients have paid too much SDLT to HMRC because their conveyance solicitor did not inform them of the many reliefs such as incorporation relief, multiple dwellings relief, uninhabitable tax relief to name but a few.
The same applies to capital gains tax. Property investors will sell properties before they get advice from our property tax advisors. We have identified a number of tax instruments that have saved our clients thousands of pounds in CGT because we get to understand the property they are selling and the timing of the vent. We can then identify ta tax-saving strategy even before the property is sold.
I hope you can see some of the tax disasters that we see on a regular basis. When will you wish to start saving property tax like many of our clients?