How Much CGT Will You Pay If You Sell Up?

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With so many landlords selling up or at least contemplating selling some if not all of their properties, knowing how much Capital Gains Tax they would pay and what they will be left with in their pockets is a very important part of making the right decision.

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PRS reveals new advisory panel and seeks new ‘member’ experts too

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The Property Redress Scheme (PRS), which has over 17,000 property agency branches and property professionals covered, has revealed its new advisory panel after recently inviting applications for the new panel, which have now been filled.

PRS says the new approach is to promote an ‘authentic outlook and attitude’ across all areas of the property sector and to ensure that the PRS takes a balanced and knowledgeable view in its vision and in all of its policy decisions. The advisory panel now has experts representing a wide variety of areas:

• Landlord – Soek Yee Ashley Wong
• Tenant, buyer, seller – Robert Brown
• Lettings – Lynne Moss
• Sales/auction – Richard Powell
• Sourcing – Rupert Collingwood
• RLM & surveying – Andrew Chater
• Inventories – Daniel Evans
• Guaranteed Rent – Mandy Chandler
• Agent compliance – Jenny Markham
• Trading Standards – Grant Reardon
• Student/build to rent – David Campbell
• Holiday Lets – Vanessa Warwick
• General Legal – Robin Stewart

The PRS deals with approximately 2,000 complaints from tenants, landlords, property buyers and sellers each year and in 2021 awarded nearly £500,000 in compensation to those who had complaints upheld.

To strengthen its governance and accountability, the PRS is also launching a new ‘member panel’, bringing forward a new, open and transparent forum to benefit both members and the scheme.

Applications are open to all members of the PRS and particularly applications from members with experience of:

• Estate agency
• Inventory providers
• Lettings and property management
• Landlords (private/company)
• Property sourcing
• Rent to rent providers
• Residential leasehold management
• Other property professionals

PRS members can apply to join the member panel here.

Sean Hooker, Head of Redress at the PRS, says: “We’re approaching our second decade of redress and have industry-leading expertise as a result. 

“We recognise the expertise of our members too and that’s why we want them to help us with their feedback, guidance, advice and support. The member panel gives them that opportunity as well as enabling them to engage with other Panel members to share knowledge and raise standards”.  

Tim Frome, Managing Director of HF Resolution, the HFIS entity that owns the PRS, adds: “Our new member panel is a key part of our strategy for improving our offering to ensure we are not acting in isolation from the sector we represent. We want to know more about how redress works for our members – and how we can make it better still in the future.”

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The Recession Proof Strategy

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With inflation at over 10%, soaring energy costs and rising interest rates, we are likely to go further into recession and money will become tight for many people. It is very important to recognise that the property investing strategies you have previously used may not be the most appropriate strategies in the changing market conditions.

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Property management firm boss disqualified for 12 years over dodgy Covid loans

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The boss of three property management companies that received Covid bounce-back loans totalling £135,000 has been disqualified as a director for 12 years.

The Insolvency Service says Michael Gaughan from Glasgow took out the loans even though none of the three companies he set up were eligible to receive them.

Covid bounce-back loan rules required companies to be trading on March 1st, 2020 but Gaughan’s three firms, which were established in February 2020 , did not start doing business until April 2020.

The 40-year-old then transferred the Covid cash into a single business bank account and used the funds to buy property worth nearly £160,000 in August 2020. He then sold the property in March 2021 for just over £140,000, and on the same day transferred £100,000 of the proceeds to his personal account.

Following this, in October 2021, the three companies were liquidated, triggering an investigation by The Insolvency Service, and he has now been disqualified, although the Government body has not revealed if any of the funds have been returned.

Gaughan’s director disqualification undertakings prevent him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Adversely affected

Steven McGinty, Investigation Manager at The Insolvency Service says “Bounce Back Loans were made available for trading companies adversely affected by the pandemic. Brendan Gaughan should have known his companies weren’t entitled to the loans yet he took them anyway and used the funds for personal gain.

“We will not hesitate to take action against directors who have abused Covid-19 financial support like this.”

In December the National Audit Office criticised the way that this kind of bounce-back loan was administered, saying that counter-fraud measures were introduced ‘too slowly’. It also revealed that the Government’s own data suggested 11% were fraudulent worth £4.9 billion were fraudulent.

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Interest rate hikes sees nine out of 10 landlords increasing rents

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Rising interest rates have seen nine in 10 landlords either increasing rents or are about to, research reveals.

The findings from SME and landlord insurance provider, Superscript, questioned 600 UK residential landlords and found that 50% of respondents have already increased rents following interest rate rises earlier in the year.

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Do you need to evict a tenant?

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If you need to evict a tenant, it can be a very stressful experience. There is a process to follow, otherwise even what seems to be a cut-and-dry case can take months and even a year or longer if not handled correctly.

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Lawyers publish HMO guide to help landlords fight ‘capricious’ councils

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A new book aims to help landlords and housing professionals decipher the complex and constantly evolving laws around HMOs.

Authors, property lawyer David Smith and his colleague Neli Borisova at JMW Solicitors, look at part two of the Housing Act 2004 – that environmental health officers use to regulate the sector – as well as the 2016 Housing and Planning Act, analysing key tribunal cases, and how they interpret and develop the law.

Houses of Multiple Occupation and Selective Licensing explains how the law’s effect on landlords depends on the way it is interpreted by these courts, particularly when Upper Tribunal rulings on issues such as Rent Repayment Orders aren’t binding on each other.

He believes the legal system was not entirely well thought out and has led to many landlords failing to properly understand their obligations.

“It created a structure which owed more to the views of desk-bound civil servants than to the often messy reality of residential properties,” he writes.

“Some local authorities have unfortunately failed to understand the legislation at all and have acted in ways which the legislation simply does not permit or have behaved in an illogical and capricious manner.”

Professional sharers

Smith tells LandlordZONE that HMOs have started to move away from just being poor quality, budget accommodation to encompassing more premium properties complete with features and services such as broadband, which attracts professional sharers.

He adds: “It will be interesting to see how things shape up once the property portal takes effect – which is a form of landlord registration – and if it takes the impetus away from councils’ licensing schemes.”

The book will be available from 31st October, through Amazon or direct via publisher Routledge.

View Full Article: Lawyers publish HMO guide to help landlords fight ‘capricious’ councils