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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I have a buy to let property portfolio of 25 properties, it

Customer Question

I have a buy to let property portfolio of 25 properties, it seems I will now be nailed to the cross with regard to taxation, are there any strategies around to assist with this legal robbery inflicted by George Osbourne, not accounting for the obvious everyone knows such as using the meager 11k allowance, PPR relief, isa's, gifting and property improvements etc, can a pension assist in any way? if I were to sell up it appears I would end up with no more than I began with 20 years ago even taking account of the tax breaks as they are pretty frugal at best.
Submitted: 6 months ago.
Category: Tax
Expert:  bigduckontax replied 6 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You would appear to have searched the position pretty fully. There is one possible loophole; if you go out of the business altogether then Entrepreneurs' Relief will apply to any capital gain which is levied at 10% as opposed to the normal 18% or 28%.

You could put some properties in a pension fund but that is a complex process and you would require trusted, local professional assistance. In any event the transfer would be a disposal in your Inheritance Tax (IHT) affairs.

I am so sorry to have to rain on your parade.

Customer: replied 6 months ago.
Keith how do you go out of business altogether, rents still come in, what does out of business mean in layman terms ?
Expert:  bigduckontax replied 6 months ago.

By selling off all your buy to lets. If you go out of that business Entrepreneurs Relief will almost certainly apply.

Customer: replied 6 months ago.
Keith I am trying to use the call me option but the site will not let me input my phone number***********
Expert:  bigduckontax replied 6 months ago.

You have a problem there. I am answering you from a country 6 hours ahead of BST so the cost would be prohibitive.

Customer: replied 6 months ago.
if I ask questions on here Keith, do I get charged each time I ask even if it applies to ellaboration of the original question ?
Expert:  bigduckontax replied 6 months ago.

No, follow up questions are free.

Customer: replied 6 months ago.
ok thats fair, so to attain entrepreneurs relief would I need to sell the portfolio as a whole, as I cannot see how I could sell over one by one as it could take years ?
Expert:  bigduckontax replied 6 months ago.

Well you could sell out over a tax year. Alternatively you could advice your tax office that your sales intention are to go out of the buy to let business.

Customer: replied 6 months ago.
difficult Keith that would mean every tenant would know I was selling out on them, and not pay rents and or not allow valuations on the property, maybe selling as a portfolio may be the answer ?
Expert:  bigduckontax replied 6 months ago.

Indeed, that is a possibility and it is also the easiest way out..

Customer: replied 6 months ago.
thank you for your assistance Keith
Expert:  bigduckontax replied 6 months ago.

Delighted to have been of assistance.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3356
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 6 months ago.

Thank you for your support.

Customer: replied 6 months ago.
Keith one final question related, can I claim entrepreneurs relief if I am not a company, I am a sole trader ?
Expert:  bigduckontax replied 6 months ago.

Indeed you can. There is a lifetime limit of 10M. If you are a higher rate taxpayer the relief will not apply and the gains will be taxed at 20%

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