Tax Changes got you worried? Ignore the doomsayers and get some professional advice, the simple strategies are already available to you. You just need to bring on a new advisor… Who? Watch the video and find out.
Hey guys, Brett Alegre-Wood from Gladfish Property. Property search. Think Gladfish.
Okay, so in this scene, what I really want to talk through was not give you any specifics about how I'm actually going about the overcoming the accounts thing, but just give you some food for thought, because there's a lot of stuff out right now saying, “Oh, it's terrible. It's going to be the end of…39% of people are going to sell off,” and all this doom and gloom.
For me, personally, I think it's absolute rubbish, okay. I think when you sit down, you look at the facts, and you actually speak to professionals, you'll very quickly see that yes, it's a pain in the ass. I'm not denying that and I think the politicians need to all be, you know, hung, drawn, and quartered, but the reality is it is manageable, and it's not something that's going to mean the end of buy-to-let. That's absolute rubbish, and people who want to invest in shares and gold and all those sort of things are trying to jump on and make it less appealing. It's not. Okay.
So, what are we looking at? What I would say to you, if you've got a good accountant…if you haven't got a good accountant, get one or call the team and we can actually refer you to one. Okay. Professionals who know what they're doing, that's really the key here, okay. So, what I tend to find is if you're buying a new property, it's looking more like you're going to buy it in a company and get a mortgage in the company. A lot of the new mortgage packages are for companies. That's all fine. It's an existing structure. For a large part, that's not going to change too much. All right.
Yes, interest rates are a little bit high, but you know what? They're going to go that way anyway because of the mortgage market review and the changes that caused. The other side is the existing stuff, because the last thing you want to do is go, “Oh, I need to put my stuff into a company.” All right. Because if you put it into a company, you've potentially got capital gains tax, you have potentially got income tax, you bump…all these different sort of things. Sorry, stamp duty, that you need to pay to move it across.
Now, I'm not saying you do because it depends on structures and a whole range of different things. Speak to a professional, but what I'm saying here is you may want to look at moving into what's called an LLP, limited liability partnership, with your wife, husband, spouse, partner, and then operating that as a professional company and as if it's a company, and potentially, a couple of years later, you can then claim the deductions. All right.
So there's actually a lot there, so speak to your accountant about that. If you're not sure about that, give us a call and we can make the referral and then they can look at your specific portfolio and give you specific advice, but you are going to have to get that. Yes, it is going to cost you some money. It's not going to be free. You know, you are going to have to restructure. You're going to have to pay some, you know, fees for, you know, setting up the structures and all this sort of stuff, but it's worth it. It's going to save you a lot of money on paying this ridiculous tax that the government is coming up with, and it's also going to save you a lot of money on moving across into a company and potentially paying capital gains, stamp duty, etc., etc., etc.
So that's just a taste, you guys. Have a great day.
Live with passion.