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  • Section 24 HQ

    Pay Down Debt or Pay into ISA/Pension ?

    I am sure most landlords would not agree but in may ways Mr Osborne has probably done me a favour

    Most of my family's BTL portfolios are now in LTD companies

    We are in the fortunate position of having other investment income outside of the companies which enables after  19% CT on profits us to use the retained income to purchase more property ( commercial is now our current aim)

    Our children and grandchildren have been issued "alphabet" non voting shares which will enable them to benefit  from any future growth in the value of the companies

    40k a year directors pension contributions rather than the measly £2880 (£3600 netted up) maximum as non incorporated individuals

    And i am doing what the goverment wants me to

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    You and I think very alike

    osbourne changed my way of working but now I think I am the better for it

    just a lot of landlords outside PT just haven’t a clue


    my tax advisor told me only 5% of his clients have done something about s24

    most just are sticking there heads in the sand

    s24 is an opportunity to shake out a bussiness to see if it’s strong enough

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Yes we are at the been there done it and got the tee shirt stage..

    Be interested  to know if you were considering starting out from scratch today you would actually go ahead

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    I have no regrets

    but would I levarge up today I don’t think I would

    I think we are going to see very low capital growth probably for the rest of my life 

    the differance in 20 years is stark

    what was achieved in the past will not happen going forward

    yeild is king good cash flow and  reinvest in different sectors

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Could not agree more

    Its time to bullet proof against interest rate rises falling property values further government legislation and falling rents

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    The government will wake up but it will have damaged the market

    europe was never on the radar when s24 was announced and stamp duty

    the market could go in free fall for all property investors

    cheap money has created a false market and money willl not be cheap going forward


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Many thanks for all the replies,

    I wish you all a Healthy, Wealthy and Prosperous New Year

    I will look further into the pension route and thanks for the book recommendation, although I am not sure I can quite bring myself to thank Mr O, maybe he just wasn't quite as bad as I first thought. One things for sure is that he has forced me to look further at diversification, which isn't really such a bad thing. I did speak to a company that deals with changing company structures and they advised that I would need to purchase at least 1 more property to make it worth while, so the brakes are on with regard future purchases unless a fantastic opportunity arises. Unfortunately a lot of the talk of ownership structures mainly concentrates on the tax savings to be had once S24 is fully implemented, not on real cashflow (taking into account mortgage rates, higher accounting fees etc) and long term ownership issues. Other issues are taking an income once I give up the day job and if the structure could be reversed at a latter date.

    Stuart -  I do currently invest 5% of my salaried earnings into a stocks and shares ISA, all 4 are tracker funds. I have systemised to remove emotion and only purchase the funds when they meet my rules. Another 5% of earnings automatically goes into an IFISA.


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    Mark, lots of good stuff here. You seem fairly sophisticated so I’m sure you will find the right solution. My advice does not really change with the clarification you’ve given.

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    Tax advisor and mortgage broker

    stuart@johnsonsca.com

    02039077022