Landlord Taxation Course Part 1 and Part 2
Information and Education in the light of the challenges facing landlords-
“I don’t talk about it I teach it”
PART 1 – The truth and impact of S24 and the new way landlords are taxed- landlords need to take decisive action before it is too late.
The course is essential for all landlords as the impact of S24 of the Finance Act 2016 and its hidden ill effects take hold on every property portfolio with mortgages, potentially putting a landlord into a position where they are unable to pay their tax bill. Landlords must take decisive action and engage with these changes before it is too late.
This course will highlight the new tax changes being phased in by 2020-2021 whereby the landlord will only be able to claim a 20% tax relief from their tax bill. It won’t always be the 20% value of the interest loan relief! This is the hidden detail which has not been addressed. Landlords are now in the second year of these changes but have not paid the tax due on the first year of the changes 2017/18. They will pay this tax by the 31st January 2019. Many landlords may begin to look for the causes of their higher tax bill and ask for help and possible solutions over the coming years.
With ‘user friendly’ worked examples the course focuses on conceptual understanding before the figures and calculations are applied. Quality work is done on the Income tax regime and specifically tax thresholds to enable the landlords to work out their own individual position with S24.
The course will look at possible solutions and the emerging strategies available to the landlord to mitigate these changes.
In delivery and design I offer a learning journey to acquire a secure knowledge of the tax system, the changes landlords are facing and a “bag of tools” to unpick their own portfolios.
Module 1 - Overview of the Income tax system
· personal allowances, tax thresholds and pinch points across the rates
· clear explanation of the changes since 2016/17 and the application of the new taxation of landlords since 2017/18 which is being phased in over the four subsequent tax years, with “user friendly” examples for each year. We are currently in the second year.
Module 2 – The new meaning of NET RENTAL PROFITS from 2017/18
· allowable expenses as on HMRC guide lines (delivered on a handout and discussed as generated by the delegates)
· how Finance and incidental finance costs are treated and the phased in changes up to 2020/21
· how the two former points affect tax liability under S24 across the marginal rates
· understanding the 20% tax reducer / tax credit - the lowest of three calculations – it won’t always be 20% of your finance! Clear examples and scenarios will be shared to expose the essence and permeating nature of these tax changes making profits spiral downwards
· the role of marginal tax rates and how they apply to each landlord individually in understanding S24 of the Finance Act 2016
· conceptual learning is supported by clear worked examples highlighting the changes which landlords with mortgages ignore at their peril
Module 3 - Perceived tax efficient solutions:
· company structures - tax considerations going forward and operating as a company or transferring individually owned property into a company structure
· Limited Liability Partnerships – the most beneficial models
· avoidance of CGT and SDLT
· remodelling of the portfolio to increase gross rental profits – HMO’s
· pay down the mortgages
· increase rent
· sell (come on the CGT course)
PART 2 - An overview of the four big beasts of the tax system IHT, CGT (a life time tax), Corporation tax and Income tax, how to cope with Making Tax Digital and an introduction to Trusts.
It is more vital than ever that the landlord understands these tax structures and the relationship between each one. Landlords can do extensive tax planning and achieve tax efficient solutions with their portfolios if they have a deeper understanding of the tax regime. Every year tax exemptions and reliefs are lost as little known but simple strategies are not used by landlords. The opportunity for wealth management in the light of S24 is underlined by an understanding of the relationship between each asset and each tax structure.
Module 1 IHT – A comprehensive overview and guide
· Estate value on death, tax thresholds and rates
· Nil rate bands (transferrable thresholds)
· The new family allowance - £1,000,000 exemption for the family home, (mirrors and smoke screens!)
· Wealth management strategies to manage an appreciating portfolio
· PETS – ‘potentially exempt transfers’ and their role in income and wealth management
Module 2 CGT - The value of your ‘annual exemption allowance’; are you throwing money away?
• Principles of CGT
• CGT and Income tax rates
• CGT exemptions
• Strategies around reducing CGT and possible investment strategies
• PETs - when is CGT triggered?
Module 3 - Corporation tax
· Corporation tax rates – how are companies taxed?
- what are the opportunities around holding property as a
· ATED – how and when?
· Indexation allowance changes
· Incorporation relief (the hidden truth and its relationship to stamp duty on incorporation)
Module 4 – Making Tax digital MTD
· Our legal responsibilities and requirements
· The time frame for landlords
· Cash or accruals? It’s now or never!
Module 5 – Trusts and wealth management
· Purpose of a trust
· Set up and exit fees
· Myths and truth
My profile and experience (I don’t talk about it I teach it)
Professional and Accredited Landlord for over 25 years
Property and tax Solicitor - 30 years experience
Qualified Teacher and Training Specialist – 20 years experience
Company Director of Priestly Properties LTD – working with clergy
Experience working with solicitors and surveyors attaining CPD
Author and designer of top selling educational tax courses for a large landlords’ organization:
· Capital Gains Tax (the possible value of the main residence in a portfolio)
· Specialist Tax course for landlords
· Landlord Taxation Course Part 1 and Part 2
· Landlord Tax and wealth management
· Housing legislation
· HMO regulation
· Management and investment
The courses are unique as they educate and inform delegates rather than referring to abstract general principles, which often only leads to costly tax advice for further explanation.
The Aims of the course and value to the delegates
These courses offer a sharp and focused education concerning the tax regimes and changes following S24 of the Finance Act 2016.
In delivery and design I offer a secure knowledge of the tax system, the changes landlords are facing and a “bag of tools” to unpick their own portfolios.
Not one size fits all – each portfolio is different. The courses are based on secure conceptual learning followed by examples of calculations and scenario work where earlier learning is applied.
This knowledge will empower them to understand their own position more clearly and have creditable and accountable conversations with their tax advisers and accountants as they seek their own solutions.
All course design is the intellectual property of Susan Bryer of Priestly Properties LTD including the conceptual teaching approach and examples.
As a qualified teacher, I understand how people learn and how to present and unravel complicated concepts with a clear and simple approach.
I am impartial when I deliver the courses and aim to provide a broad perspective of options and strategies. I am not selling the delegates anything or trying to get them to instruct me to use a strategy, which in my experience is often the motivation of tax advisers who present. Speakers often promote what they are wishing to sell or concentrate their presentation only in the areas of their expertise.