Beware BICT Copycats

admin    Uncategorized     agents

The post Beware BICT Copycats appeared first on Property118.

View Full Article: Beware BICT Copycats

Beware Tax Planning Models Using LLP’s

admin    Uncategorized     agents

If you are being advised to use an LLP as a stepping stone towards incorporation then you have good cause to be wary.

There is a business model which is doing the rounds at the moment which relies on a piece of legislation which was created to deal with CGT on the liquidation of an LLP. However, this legislation is being abused and in my opinion it will not be long before HMRC comes down on it like a ton of bricks under their General Anti Abuse Rules in GAAR legislation.

When property is transferred into an LLP there can be no SDLT or CGT payable. That is a fact.

It is also a fact that if the partnership geuinly fails and is liquidated then the base costs for calculating CGT is the value of the properties at the point they were transferred into the LLP.

At face value this is all great news because at the time the properties are transferred to the LLP they may well be worth considerably more than they cost to acquire.

However, if you enter into a LLP with the sole intention of liquidating it at a later date to avoid tax that is without doubt abuse of the tax system and HMRC are going to be far from happy about it. My concern is that 1,00’s of LLP’s are currently being formed for exactly that purpose.

It doesn’t take a rocket scientist to see how HMRC will see straight though this.

If you form an LLP today, liquidate it after say one year and then a company, which has exactly the same owners miraculously decides to acquire the same assets it is pretty obvious what has occurred.

If this structure has pitched to you please consider very carefully what I have said above. You could find an unwelcome tax demand on your doormat for all the CGT you have avoided at some point in the weeks, months or even years after you have liquidated.

Show Tax Consultation Booking Form

Tax Consultation Booking Form

Consultations include new client compliance checks, fact find via email with complimentary software, expert analysis, a detailed written report and recommendations and a 30 minute Q&A session via Skype or telephone.

• Name*

  
  First

  
  Last

• Email*

• Phone*
• Additional Message
  Please provide an overview of your circumstances and what you are looking to achieve.
• Property Portfolio Spreadsheet
  If you have a spreadsheet with details of your properties please upload it here.
• Property118 Tax Consultancy*

  Price: £ 400.00

• Total
  £ 0.00

• Credit Card

  American Express

  Discover

  MasterCard

  Visa

  Card Number

  
  
  
  Expiration Date

  Month010203040506070809101112

  Year20172018201920202021202220232024202520262027202820292030203120322033203420352036

  
  
  Security Code

   
  
  
  Cardholder Name

if(typeof gf_global == ‘undefined’) var gf_global = {“gf_currency_config”:{“name”:”Pound Sterling”,”symbol_left”:”£”,”symbol_right”:””,”symbol_padding”:” “,”thousand_separator”:”,”,”decimal_separator”:”.”,”decimals”:2},”base_url”:”https://www.property118.com/wp-content/plugins/gravityforms”,”number_formats”:[],”spinnerUrl”:”https://www.property118.com/wp-content/plugins/gravityforms/images/spinner.gif”};jQuery(document).bind(‘gform_post_render’, function(event, formId, currentPage){if(formId == 312) {gf_global[“number_formats”][312] = {“1″:{“price”:false,”value”:false},”2″:{“price”:false,”value”:false},”3″:{“price”:false,”value”:false},”5″:{“price”:false,”value”:false},”8″:{“price”:false,”value”:false},”4″:{“price”:”decimal_dot”,”value”:false},”6″:{“price”:false,”value”:false},”7″:{“price”:false,”value”:false}};if(window[“gformInitPriceFields”]) jQuery(document).ready(function(){gformInitPriceFields();} );if(!window[‘gf_cc_rules’]){window[‘gf_cc_rules’] = new Array(); } window[‘gf_cc_rules’] = {“amex”:[“34″,”37″],”discover”:[“6011″,”622″,”64″,”65″],”mastercard”:[“51″,”52″,”53″,”54″,”55″],”visa”:[“4″,”417500″,”4917″,”4913″,”4508″,”4844″],”jcb”:[“35″],”maestro”:[“5018″,”5020″,”5038″,”6304″,”6759″,”6761″]}; jQuery(document).ready(function(){ { gformMatchCard(“input_312_7_1″); } } );new GFStripe( {“apiKey”:”pk_live_88gbI6MTSx0mkOyA67c6c9Rz”,”formId”:312,”ccFieldId”:7,”ccPage”:1,”isAjax”:false,”cardLabels”:{“amex”:”American Express”,”discover”:”Discover”,”mastercard”:”MasterCard”,”visa”:”Visa”,”jcb”:”JCB”,”maestro”:”Maestro”}} );} } );jQuery(document).bind(‘gform_post_conditional_logic’, function(event, formId, fields, isInit){} ); jQuery(document).ready(function(){jQuery(document).trigger(‘gform_post_render’, [312, 1]) } );

The post Beware Tax Planning Models Using LLP’s appeared first on Property118.

View Full Article: Beware Tax Planning Models Using LLP’s

Devon landlord receives prison sentence for unsafe DIY gas work

admin    Uncategorized     agents

Gas Safe:

Allan King an Ilfracombe landlord was given a suspended jail term plus a £14,000 fine for endangering the lives of his tenants with DIY gas work in his rental property.

Exeter Crown Court on 4^th August heard that in September 2016 King replaced a boiler himself at his rented property on Arcade Road, this despite have no training in gas work and not being registered with the Gas Safe Register.

After the boiler developed a fault a month after the fitting, King called in a gas engineer for assistance. The engineer immediately recognised the DIY botch job and realised the boiler was risking the tenants’ lives, so he isolated. Following this The Health and Safety Executive (HSE) was informed and it launched an investigation.

It seems that King had had a previous warning in July 2016 from The HSE that only a member of Gas Safe Register is allowed to work on gas appliances.

King of Arcade Road, Ilfracombe pleaded guilty to breaches of the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work Act 1974. He was sentenced to nine months imprisonment suspended for 18 months and fined £3,000. He was also ordered to pay costs of £12,184.14.

HSE Inspector, Simon Jones, speaking after the hearing, said:

“Landlords have a legal duty to ensure that any gas work at their rented properties is only undertaken by a member of Gas Safe Register.

“In this case, Mr King ignored previous warnings and undertook his own DIY gas work for which he had neither the competence nor credentials.”

”His actions were dangerous and put his tenants’ lives at risk’

A Landlord’s Responsibilities with Gas:

When letting a property that contains gas and gas appliances (including lodgers in a landlord’s own home) these precautions must be followed by law:

• Make sure gas fittings, flues and appliances are installed and maintained in a safe condition in accordance with the manufacturer’s service instructions. If these are not available it is recommended that they are serviced annually, unless advised otherwise by a Gas Safe registered engineer
• Have an annual gas safety check carried out by a Gas Safe registered engineer on each gas appliance and flue and a Gas Safety Certificate issued.
• During the tenancy, or before any new tenancy starts, make sure the Gas Safety Certificate is current, and a copy is issued to the new or a current tenant within 28 days of the check
• The landlord to keep a record of each safety check for at least two years

Full information about landlords’ responsibilities for gas at: http://www.hse.gov.uk/gas/landlords/index.htm

A guide to landlords’ duties: Gas Safety (Installation and Use) Regulations 1998

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Devon landlord receives prison sentence for unsafe DIY gas work | LandlordZONE.

View Full Article: Devon landlord receives prison sentence for unsafe DIY gas work