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  • Tax

    I can't retire .... because I am a Landlord!



    I have just received a phone call from a Landlord who is a full time Landlord with no other income until they retire ??

    This story is quite Ironic ???

    I had a referral from a Mortgage Broker and his client has borrowings and is living off his BTL income

    His intention was to take his State Pension and start an income from a Company pension

    He  is borderline on S24 and if rates of interest don't rise he will be ok on the s24 front

    But If he draws his pensions this will tip the balance of S24

    The income he would receive would just cover the new Tax Bill created by S24

    So because he is a Landlord he can't take his pensions as he gains nothing ???

    I would have never thought being a Landlord would make you worse off on the pension front!

    He can take his tax free cash sum from his pension but he will have to delay taking his State Pension and income from his personal pensions.

    S24 has a habit of hitting the ones who have done the right think in life and that's plan for an old age.

    He is looking now at transferring his BTL to his husband.

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    Learn Change and Adapt ?????

    "... transferring his buy to let to his husband"?! Smile

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    we are not all hetro lol  gays can be landlords too lol

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    Learn Change and Adapt ?????

    Hi DL,

    Depending on the husbands current income, maybe they could use a Form 17 and DoT to transfer the rent to the husband?

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    At retirement age he should be looking at repaying outstanding mortgages so perhaps sell some of the properties and do this

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    I think this is a hard one - His Mortgages are written to age 85  and he makes his income up with BTL

    and his income now is around £40k a year so just giving up sounds quite hard

    he is between a hard rock and a hard place with this so I think his only option would be to transfer property to his husband

    But his husband works and is earning around 30k a year

    In my eyes this situation is very unfair  indeed

    S24 has such a lot of effects for a lot of reasons

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    Learn Change and Adapt ?????


    I don't know a great deal on form 17 so  they will need advice

    on that one dom

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    Learn Change and Adapt ?????

    Form 17 just transfers the beneficial interest of the property to someone else.

    It's a downloadable HMRC form.

    In addition, you need to have a Deed of Trust.

    I'll email you an example if you like DL.

    If the husband is on £30k, there's not much point in transferring more than ~ £13k of rent to him.

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    Do you know if/how this applies to unmarried couples? I was just about to start looking in to it for a property we both own and currently split 50/50 of income, but would be better if I had 100% (income not ownership) as I'm a lower rate tax payer. Any info welcome - checked form 17 and it's for married/civil partners. TIA Smile

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