Tax
Understanding property tax is the easiest way to add to your property profits for minimal effort.

The Best Tax Havens In Europe PDF Print
Tax General

It's not only Europeans that want to live and work in the above countries. I've come across a lot of US expats moving to Europe for both the climate (e.g. to avoid the hurricane season of the Caribbean), as well as to experience some of the rich culture.

In terms of low taxes, Andorra and Monaco are probably the top two countries. Andorra doesn't levy any taxes at all, and whereas Monaco does levy a limited inheritance tax and business profits tax, for most people neither of these will impact significantly.

Many of the other European jurisdictions are 'low tax' as opposed to 'no tax'. So the Isle of Man can levy higher rate tax at 18% (and for the very wealthy they have capped an individuals income tax liability at £100,000), Malta will tax you at 15% provided you get classed as a permanent resident, Cyprus will tax you at 20-30% and the Channel Islands will tax you at 20%.

Many of the other European countries offer incentives such as only taxing local source income and overseas income if it's actually brought into the country ( e.g. Ireland or the UK).

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Tax benefits of joint ownership PDF Print
Property Tax

As property prices continue to rise, the barrier to entry for new investors is getting steadily higher. The solution for many is to join together with other investors and pool resources in order to achieve the 'critical mass' necessary to get started in the increasingly competitive UK property market.

But how exactly do you pool your resources together? Some form of 'Special Purpose Vehicle' (aka "SPV") is often the answer.

In this article, we will take a look at some of the legal and tax implications of a few of the more popular forms of 'SPV' currently in use.

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Top Ten Tax Deductions PDF Print
Tax General

Sometimes these days it seems like the World has gone ‘Top Ten’ crazy. Everywhere you look, there’s a ‘top ten this’ and a ‘top ten that’.

Not to be outdone, I present here my ‘Top Ten Tax Deductions for Property Investors’. I must admit that there is no statistical basis for my chart rankings but this list is based on many years’ experience of dealing with property businesses of all shapes and sizes:


1) Interest

Whether your interest is tax deductible or not generally depends on the use to which the money is put. It does not, as many people seem to think, depend on which property the loan is secured on.

If Robert borrows £25,000 by re-mortgaging his home and uses the money as a deposit on a buy-to-let flat he can claim the interest because it has been used for business purposes.

And here’s an interesting tax tip. If you intend to put your former home into your property letting business, consider re-mortgaging it before you do. The whole amount of any interest should be tax deductible.

For example, let’s say Robert’s brother Vincent has a property worth £500,000 and an outstanding mortgage of £200,000. He remortgages the property and raises £250,000 which he uses to buy a new home.

He now starts to rent out his £500,000 property. The entire interest payable on the whole of Vincent’s £450,000 mortgage will be allowable as a tax deduction.

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Avoid Inheritance Tax PDF Print
Inheritance Tax

You probably know this already, at least in the back of your mind, but did you know:

- More of us than ever before (and probably all property investors)  are liable to give up almost half (40%) of our estate to the tax man when we die?

- Your home is at risk? Even if you give your home away before death, you can still end up giving almost half of your estate to the tax man.

- The Government pulls in a staggering £3 billion a year from Inheritance Tax?

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Avoid Property Tax PDF Print
Property Tax

How do you avoid property tax ?

Want to maximise your property profits ? Well don't give too much away to the tax man, you will be surprised how much extra profit you can keep in your pocket with the right property tax knowledge !

Tax, Capital Gains (CGT), Income Tax and Inheritance Tax ... it's not quite child's play, but if you own property you have to face it... sooner or later and  the longer you leave it, the more seriously your delay can affect your (post tax) wealth!

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