Looking to Sell Your Property in 2017? R&T Can Help!
In 2017 HMRC will be increasing pressure on landlords to come forward and declare their untaxed earnings.
Since the Government’s “Let Property Campaign” began in 2013 over £50 million in previously unpaid taxes have been collected. That’s despite the fact many owe just a few hundred pounds in any given tax year.
That’s because there are so many non-professional landlords who, for example, rented out a home that was difficult to sell after moving house.
These types of landlords are less likely to have a deep understanding of the complex tax laws which affect them.
If you own a property which has proved tough to sell, then we can help.
R&T Property Solutions has been buying properties for many years.
Although based in Glasgow, we operate across Scotland – from Edinburgh in the east to Greenock in the west; Aberdeen and Inverness in the north to Dumfries in the south and all points in between.
We’re happy to take on problem properties, those that are unlikely to attract a mortgage, or a traditional buyer.
We pay cash and usually do not need a Home Report. If you choose one of the solicitors on our panel we can often pay the fee.
Best of all, we work fast. We understand that in many cases it’s in everyone’s best interests for the transaction to go through as soon as possible and act accordingly.
We can provide a guaranteed offer within 24 hours and it’s not unusual for us to wrap up the whole contract within seven days.
We’re also on the look-out for all other kinds of properties, large or small, individually owned or part of larger portfolios.
Particularly if they are subject to regulated tenancies. We guarantee to minimise disruption to your tenants while we assess the value of the property.
And if you sell to us there will be no brokers or estate agents fees.
And even if we don’t eventually agree a deal for your property, if you give us a call we will provide you with our best advice so you can act in your own best interests.
HMRC are also offering advice. They say the Let Property Scheme does not have an end date but landlords intending to come forward who delay risk higher penalties if they are subject to an enquiry and they have not already notified an intention to disclose.
‘Regardless of whether the errors were due to misunderstanding the rules or deliberately avoiding paying the right amount it is better to come to HMRC and admit any inaccuracies rather than wait until HMRC uncovers those errors,’ stated a spokesman.
Any amount due will depend on why a person failed to disclose their income. For example, those who deliberately kept information from HMRC will pay a higher penalty than if they have simply made a mistake.
For example, a landlord who registered for Self-Assessment and completed tax returns within the appropriate time limits, but simply made a careless mistake when declaring income, will only pay for a maximum of six years no matter how many years they’re behind with their tax affairs.
However, the law allows HMRC to go back up to 20 years and in serious cases they may carry out a criminal investigation.
Many landlords, regardless of their tax status are simply getting out of the business due to increasing pressure from all sides.
Those in Aberdeen, for example, have seen rents fall by over 13% and in Aberdeenshire by 9%, with both markets depressed due to the fall in oil prices since the middle of 2014.
Rents in Inverclyde and Dundee are also down, but even in areas where rents have increased the average has been just 1.5% in the past year, which is below the rate of inflation.
In 2017 changes to mortgage tax relief for landlords will come into force and will mean profits will take a big hit.
It’s highly unlikely these extra costs will be able to offset by increasing rents.
Apart from local economic factors forcing rents downwards, there are strong indications that most tenants are already stretched to the limit financially and will not be able to afford even a small rise, unless they also gain a wage rise.
The Brexit vote suggests that will be unlikely, although it is unclear exactly what the long term prognosis for wages will be once we leave the EU.
Most analysts predict inflation will rise faster than wages and that will make it impossible for higher rents to be absorbed by tenants.
If these issues are causing you sleepless nights, then then don’t despair. R&T Property Solutions would be delighted to speak to you about your portfolio.
In 2016 we have purchased an average of more than one property every single week. With your help we’re looking forward to improving on that record in 2017.
Best wishes for a happy, healthy and prosperous new year from the team at R&T Property Solutions.