Optimise Accountants | How will he Budget Announcement affect you?

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Property tax specialistsProperty Tax SpecialistsHelping high rate tax payers invest in property Each slide should be accompanied by a yes. - Ask: - Would this be useful? - Would this be of benefit to you? - Can you see how this would make you more moneyOnce you have identified the key benefits that the customer is most keen on then relate the remaining slides to that key benefit to close out more easily.1Helping high rate tax payers invest in property Louise and Simon have been property investors since 2006 and not paid any tax on our property portfolio.At Optimise we are all passionate about property, and we think this serves us best to help you2Helping high rate tax payers invest in property Free guide if you give me your business card or your name, mobile and email and a piece of paperAt Optimise we are all passionate about property, and we think this serves us best to help you3Helping high rate tax payers invest in property We only focus on property investors like you since 2003 600+ investors across the UKAt Optimise we are all passionate about property, and we think this serves us best to help you4Helping high rate tax payers invest in property Accountants talkTax allowable expensesNational Insurance ContributionsCapital Gains TaxCapital AllowancesIncome TaxCorporation TaxCompany structures Limited CompaniesPartnershipsLLPsSole TradersStamp DutyCouncil TaxInheritance taxInternational taxDeed of trustVAT on new buildVAT on refurbishment projectsMore interesting factsMore dataBoredomGet me out of hereI cant take anymorePlease leave me aloneI am going to get a phone and call the policeI mean it I have had enoughIf you can see this then you have good eye sightHave you had enough yet?At Optimise we are all passionate about property, and we think this serves us best to help you5Helping high rate tax payers invest in property At Optimise we are all passionate about property, and we think this serves us best to help you6Helping high rate tax payers invest in property Employment taxSavings income taxInsurance premium taxSelf employment taxNational InsuranceRoad TaxCouncil TaxFuel, alcohol, cigarettes DutyVATTax timeall the time(life, death, taxes)At Optimise we are all passionate about property, and we think this serves us best to help you7Helping high rate tax payers invest in property Return on Investment (ROI) Do you factor tax in your ROI calculation?At Optimise we are all passionate about property, and we think this serves us best to help you8Helping high rate tax payers invest in property Jane Medical professional High rate tax payer (2014-15)100,000 to buy a new flat25,000 deposit 3,000 profit per year12% ROI = 3,000 divided by 25,000At Optimise we are all passionate about property, and we think this serves us best to help you9Helping high rate tax payers invest in property Jane Medical professional High rate tax payer (2014-15)100,000 to buy a new flat35,000 (25,000 deposit + 10,000 tax)1,800 profit per year (after tax)5.1% ROI = 1,800 divided by 35,000At Optimise we are all passionate about property, and we think this serves us best to help you10Helping high rate tax payers invest in property Property profits2,100 rent (6 ASTs X 350)(210) less voids(350) less Utility bills(425) less mortgage(300) less maintenance815 profit per month9,780 annual profitsAt Optimise we are all passionate about property, and we think this serves us best to help you11Helping high rate tax payers invest in property Who is affected by the budget announcementHigh rate tax payersPeople with furnished propertiesPeople that own limited companiesPeople with large asset portfolios (for example properties, shares, businesses)People buying second homes, BTLsPeople selling propertiesAt Optimise we are all passionate about property, and we think this serves us best to help you12Helping high rate tax payers invest in property Who is affected by the budget announcementWithholding CGTRent a room AllowanceMortgage Interest Relief CapCorporate TaxIncrease SDLTWear & Tear AllowanceAt Optimise we are all passionate about property, and we think this serves us best to help you13Helping high rate tax payers invest in property Who is affected by the budget announcementAt Optimise we are all passionate about property, and we think this serves us best to help you14Helping high rate tax payers invest in property 3% additional stamp duty costs (additional tax)Anything over 40,000 (3% on total amount)Direct from .Gov website"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply (sell within 36 months)Who is affected by the budget announcementAt Optimise we are all passionate about property, and we think this serves us best to help you15Helping high rate tax payers invest in property SDLT Resi & commercial scaled on tier basisValuesResidential0-125K0%125K - 250K2%250K - 925K5%925K - 1.5m10%1.5m+12%Plus surcharge> 40K3%ValuesCommercial0-150K0%150K - 250K2%250+5%At Optimise we are all passionate about property, and we think this serves us best to help you16Helping high rate tax payers invest in property Identify chattels to reduce SDLT and taxAt Optimise we are all passionate about property, and we think this serves us best to help you17Helping high rate tax payers invest in property Identify chattels to reduce SDLT and taxcarpets (fitted or otherwise)curtains BlindsFree-standing furniturekitchen white goodsElectric and gas fires (provided that they can be removed by disconnection from the power supply without causing damage to the property)light shades and fittings (unless recessed).At Optimise we are all passionate about property, and we think this serves us best to help you18Helping high rate tax payers invest in property Who is affected by the budget announcementWithholding CGTRent a room AllowanceMortgage Interest Relief CapCorporate TaxIncrease SDLTWear & Tear AllowanceAt Optimise we are all passionate about property, and we think this serves us best to help you19Helping high rate tax payers invest in property Property Profits9,780 annual profits(2,520) wear & tear allowance7,260 taxable profit(2,904) tax @ 40% (12% of income)At Optimise we are all passionate about property, and we think this serves us best to help you20Helping high rate tax payers invest in property Property Profits9,780 annual profits(2,520) wear & tear allowance9,780 taxable profit(3,912) tax @ 40% (16% of income)At Optimise we are all passionate about property, and we think this serves us best to help you21Helping high rate tax payers invest in property Property Profits9,780 annual profits5,100 add mortgage interest14,880 Paper taxable profitAt Optimise we are all passionate about property, and we think this serves us best to help you22Helping high rate tax payers invest in property Property Profits14,880 Paper taxable profit5,952 tax @ 40%(1,020) 20% tax relief on mortgage4,932 tax to pay 20% of incomeAt Optimise we are all passionate about property, and we think this serves us best to help you23Helping high rate tax payers invest in property 25,200 rental incomeBefore budget announcement2,904 tax (11% of rental income)6,876 cash profit (27% of renal)After budget announcement4,932 tax (20% of rental income)4,848 cash profit (19% of rent)At Optimise we are all passionate about property, and we think this serves us best to help you24Helping high rate tax payers invest in property What does RE stand for?REPLACEREPAIRRENEWAt Optimise we are all passionate about property, and we think this serves us best to help you25Helping high rate tax payers invest in property What does RE stand for?Certain improvements are tax allowable: http://www.hmrc.gov.uk/manuals/bimmanual/BIM46904.htmAt Optimise we are all passionate about property, and we think this serves us best to help you26Helping high rate tax payers invest in property What does RE stand for?Not allowable At Optimise we are all passionate about property, and we think this serves us best to help you2710% wear & tear on furnitureMust be fully furnishedBeds FurnitureCurtainsWhite goodsSofa, chairs, tablesCabinets and cupboardsRemoved from April 2016Helping high rate tax payers invest in property At Optimise we are all passionate about property, and we think this serves us best to help you28Helping high rate tax payers invest in property REPLACEREPAIRRENEWRE What does RE stand for?At Optimise we are all passionate about property, and we think this serves us best to help you29Helping high rate tax payers invest in property Budget solutionsBuy new properties in a limited companyTransfer existing properties to a limited companyPay off mortgage (mortgage interest relief 20%)Invest in commercial propertiesInvest in your pension to increase personal allowancesAt Optimise we are all passionate about property, and we think this serves us best to help you30Helping high rate tax payers invest in property Now20172020+20%19%18%/17%Corporation tax ratesPeople with limited companiesAt Optimise we are all passionate about property, and we think this serves us best to help you31Helping high rate tax payers invest in property 10,800 annual profitsScenario 1: Without Limited Company4,320 Tax at 40%Scenario 2: Limited Company1,836 tax at 17%Which do you prefer?At Optimise we are all passionate about property, and we think this serves us best to help you32Helping high rate tax payers invest in property Typically:Mortgage rates are higher than BTLArrangement fees are higherDeposit are higher (30%+)Mortgage applications take longerConsiderations when buying in a limited companyAt Optimise we are all passionate about property, and we think this serves us best to help you33Helping high rate tax payers invest in property Stamp Duty Land & TaxCapital Gains TaxGetting a mortgageConsideration point: Transfer properties with small CGTTransferring existing properties into a Limited Co.At Optimise we are all passionate about property, and we think this serves us best to help you34Helping high rate tax payers invest in property Ramsay v HMRC (2013)Transfer all properties to a LTD = no CGTMust be working in property Incorporation reliefAt Optimise we are all passionate about property, and we think this serves us best to help you35Helping high rate tax payers invest in property Questions but first how to engage with us?At Optimise we are all passionate about property, and we think this serves us best to help you36Helping high rate tax payers invest in property High rate tax payers onlyNameNumberEmail addressAt Optimise we are all passionate about property, and we think this serves us best to help you37Helping high rate tax payers invest in property Tax Consultation for less than 100http://www.optimiseaccountants.co.uk/financetaxconsultation/Code Talk33 to get 33% off your consultationAt Optimise we are all passionate about property, and we think this serves us best to help you38