Hello and welcome to our final (and festive) newsletter of the year…
And whilst it’s been a good year for a lot of landlords (and we hope it’s been so for you), many will not be feeling too jolly paying their highest ever tax bill next month as Section 24 peaks.
Our team have spoken with 2351 landlords so far this year to review their initial position, and whilst for many landlords the good news is you are already as tax efficient as possible – it never hurts to find out if you could benefit.
This year we’ve also:
- added 12 videos to our video vault (free to you as an LT4L subscriber)
- published 23 blogs and articles to our website, the most recent ‘Tax Planning for Rising Rates’ is included in this newsletter.
Of course, the ‘big news’ story of 2021 was that Corporation Tax will be increasing to 25% in 2023 and many landlords that already have limited companies will see tax rates increase. There’s more on this and other updates below for you.
Inside Issue #14
Tax Changes Summary for Landlords
Here are the key take-aways for landlords following the autumn budget and other announcements, as well as the full budget summary PDF from our accountants and our recent webinar recording with property journalist Graham Norwood.
1. Making Tax Digital (MTD) has been given another stay of execution.
Sole traders and landlords who have an annual income over £10,000 will be given an extra year to prepare for MTD. MTD for self-assessment will now be introduced from 6 April 2024. General partnerships will not be required to join MTD until 6 April 2025.
However, we do think this means that quarterly tax payments are on the planning horizon for HMRC – something VAT registered companies reporting quarterly are already doing.
2. For UK residential property sales completing on or after 27 October 2021, the deadline for reporting and paying CGT is increased from 30 days to 60 days
3. No changes to SDLT, CGT or IHT rates, with SDLT now back to normal
4. New 4% Residential property developer tax on Profits over £25m
A new tax will be introduced on company profits derived from UK residential property development. This is to help pay for the removal of unsafe cladding such as that which led to the Grenfell Tower tragedy in 2017. It will be charged on relevant profits arising after 31 March 2022.
5. Main Rate of Corporation Tax to Increase to 25% from April 2023
Find out more and what small business reliefs are available in our quick 2.5 minute video ‘Upcoming Tax Changes’ available in the Video-Vault
6. Dividend Tax to increase by 1.25% from April 2022
Articles & Blogs
Tax Planning for Rising Rates
With talk of rising interest rates circulating, Ben Rose, Head of Group Business Development,
shares his thoughts on how best to approach tax planning to mitigate the impact of any changes.
How a married couple refinanced their property portfolio to beat the tax changes
A clever married couple refinanced their property portfolio to beat the tax changes, proving that the most profitable restructure is not always a tax restructure. Find out how they did it
LT4L Returns to Live Events
After what feels like forever, Less Tax for Landlords finally made a return to live events in October 2021 exhibiting at the National Landlord Investment Show in both Manchester and London along with attending the Property Investor Media Show at the ExCel Centre for 2 days. Find out how it went and what seminars we took part in, in our website blog Live Events in 2021.
Webinar Replay
Webinar: Rising Rates and Taxes
On Wednesday 24th November we hosted a webinar, Rising Rates and Taxes: What are your options as a landlord?
Attended by over 200 landlords we discussed the impending tax changes including Dividend Tax in 2022, Corporation Tax in 2023 and rising mortgage rates. You can register to watch the full webinar here or catch the Q&A in the video vault.
Latest Videos
Live Q&A – Rising Rates and Taxes. What are your options? – 24th November 2021
Nigel, Chris, Malcolm and Ben answer questions put to them during our webinar which took place on 24th November such as; ‘To split the income with my spouse on a property I own solely, how do I set up a Deed of Trust without paying Stamp Duty?’, ‘Does HMRC see this as a tax avoidance scheme?’ and ‘Do you have a minimum value of profit or portfolio you would work with?’.
Issue #14 Selected Videos from the Vault
In this video, Malcolm talks about the Core and wider services offered within the One Consultancy Group.
In part 1, Ben gives a brief overview of Section 24, looking at the Tax Escalator Effect and the impact it will have on landlords tax payments in January 2022
What is the most profitable restructure? In part 2, Ben takes a closer look at mortgage rates and the options Landlords can consider to restructure their businesses in order to put themselves in a better tax position.
Events
National Landlord Investment Show
Tuesday 15th March
9.30am
Old Billingsgate, London
We’ll be exhibiting at the show, and we welcome all landlords to come and speak to us. Whether you’re just starting out or you have a portfolio of properties, we can help you understand your options for the most tax efficient and flexible business structure for long term growth. Register for free now
Property Investor Show
Fri 1st April 10am – 6pm
Sat 2nd April 10am – 5pm
ExCel London
Following an excellent turn out at the Property Investor Show in October 2021, we have decided to return once more to Excel London in April.
Register for free now
The Process of Working with LT4L
What can I expect when I complete an assessment?
A community of support and networking with like-minded portfolio landlords!
In the summer of 2019, we hosted a BBQ for our clients but with the Coronavirus pandemic hitting we were unable to host any more events in 2020. Fortunately, on the 12th of November our client community, which has doubled in size since the 2019 BBQ, joined us at the Oval Cricket Ground for an evening of food, drink and networking. It was fantastic to get everyone together once more under one roof!
Every year we like to give our clients the opportunity to network and share their knowledge with other landlords. Being an LT4L client means you get access to our client only Facebook group where you can ask questions and explore ideas, but we also try to put on as many networking opportunities too.
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