Organising Assets - Best Way…?
Discussion
Currently own my main residential property (£50k mortgage) and a BTL (£60k mortgage)… historically things have been pretty simple. However, I’m now considering purchasing a property in London, given the need to be there a few days a week for work.
As a result, what would be the most efficient way to organise the assets from a tax perspective? Not really dove into this, so i could very easily get a response of… just buy it and pay the stamp duty.
Appreciate any advice / help!
As a result, what would be the most efficient way to organise the assets from a tax perspective? Not really dove into this, so i could very easily get a response of… just buy it and pay the stamp duty.
Appreciate any advice / help!
NortonES2 said:
Nominate the one that is going to rise most in value as your main home to avoid the most CGT when you sell. Depending on where your current home is situated you may need a crystal ball for this.
Not a chance of this ^^^^, the rules of what is your main home are pretty clear. Peterpetrole said:
Not a chance of this ^^^^, the rules of what is your main home are pretty clear.
Disagree, you can nominate either property upto 2 years after buying the second.https://www.gov.uk/tax-sell-home/nominating-a-home
Edited by NortonES2 on Monday 30th September 11:50
Edited by NortonES2 on Monday 30th September 11:53
How much return is earned from a BTL these days, net after borrowing costs, other expenses and tax?
I'll be surprised if it isn't a case of sell the BTL and buy something else. The Stamp Duty cost of buying anything in London is nuts, so make sure you'll be keeping the property a good few years. Otherwise the combination of Stamp Duty when you buy and CGT when you sell can be aggressive compared with rental, particularly if you're carrying a hefty mortgage to boot.
I'll be surprised if it isn't a case of sell the BTL and buy something else. The Stamp Duty cost of buying anything in London is nuts, so make sure you'll be keeping the property a good few years. Otherwise the combination of Stamp Duty when you buy and CGT when you sell can be aggressive compared with rental, particularly if you're carrying a hefty mortgage to boot.
Thanks all, appreciate the advice… seems like an accountant will be the way to go.
Property 1: Main Resi, £750k valuation, purchased for £350k in 2021. Managed to get it without the covid tax, and spent £150k getting it sorted out.
Property 2: BTL, £200k valuation. Has done me well and don’t really want to sell given it sits outside of the new Curzon street station. Purchased for £115k many many years ago.
Property 3: Likely to be approx £500k.
Also worth noting I have to complete a self assessment each year, so another way the tax man gets a few £££
Property 1: Main Resi, £750k valuation, purchased for £350k in 2021. Managed to get it without the covid tax, and spent £150k getting it sorted out.
Property 2: BTL, £200k valuation. Has done me well and don’t really want to sell given it sits outside of the new Curzon street station. Purchased for £115k many many years ago.
Property 3: Likely to be approx £500k.
Also worth noting I have to complete a self assessment each year, so another way the tax man gets a few £££
Zaichik said:
Need an apartment in London temporarily? Join the Labour Party and get friendly with Lord Ali. Jobs done.
Meanwhile, in the real world, How long will you be in London for? If you have a 750k.hiuse if the mortgage is portable isn't route 1 sell that/ buy in London at 750 and just incur the transaction (sale/ buy +stamp).costs? That's just swapping one main res for another so no additional stamp due. You can stagger that but you have to pay the extra stamp up front and reclaim it if you sell house 1 within 18 months.
If you buy what amounts to a second home or second BTL you'll pay the extra stamp, and, depending on where you mean "in London" you could be getting anything from a short lease car park space to a 3-bed semi and anything in-between at half a bar. So what matters to you?
And..... We're 30 days away from what may or may not prove the biggest butt f
king budget anyone's seen, in which stamp on 2nd homes may go bananas, before anything else.Oh, if if you work out just the stamp, see how many nights in an OK hotel thet might get instead...
macron said:
Meanwhile, in the real world,
How long will you be in London for? If you have a 750k.hiuse if the mortgage is portable isn't route 1 sell that/ buy in London at 750 and just incur the transaction (sale/ buy +stamp).costs? That's just swapping one main res for another so no additional stamp due. You can stagger that but you have to pay the extra stamp up front and reclaim it if you sell house 1 within 18 months.
If you buy what amounts to a second home or second BTL you'll pay the extra stamp, and, depending on where you mean "in London" you could be getting anything from a short lease car park space to a 3-bed semi and anything in-between at half a bar. So what matters to you?
And..... We're 30 days away from what may or may not prove the biggest butt fking budget anyone's seen, in which stamp on 2nd homes may go bananas, before anything else.
Oh, if if you work out just the stamp, see how many nights in an OK hotel thet might get instead...
London will be mid term, with the intention that the parents will stay in the main resi property.How long will you be in London for? If you have a 750k.hiuse if the mortgage is portable isn't route 1 sell that/ buy in London at 750 and just incur the transaction (sale/ buy +stamp).costs? That's just swapping one main res for another so no additional stamp due. You can stagger that but you have to pay the extra stamp up front and reclaim it if you sell house 1 within 18 months.
If you buy what amounts to a second home or second BTL you'll pay the extra stamp, and, depending on where you mean "in London" you could be getting anything from a short lease car park space to a 3-bed semi and anything in-between at half a bar. So what matters to you?
And..... We're 30 days away from what may or may not prove the biggest butt f
king budget anyone's seen, in which stamp on 2nd homes may go bananas, before anything else.Oh, if if you work out just the stamp, see how many nights in an OK hotel thet might get instead...
I don’t need anything extravagant in London, you can get plenty in Kingston within the £500k budget (no partner/kids) so an apartment does me ok. And it’s close enough to my office.
Ultimately, this will end up becoming a releverage scenario to purchase additional properties (subject to the Labour budget in due course…. who knows what will happen there which may scupper all plans!).
SSG1000 said:
you can get plenty in Kingston within the £500k budget
So not in London, and on a poor rail connection.(no partner/kids) so an apartment does me ok. And it’s close enough to my office.
[quote=SSG1000this will end up becoming a releverage scenario to purchase additional properties
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