Archive for the ‘UK Property Investment’ Category
UK Government to Raise CGT?
Are you a UK-based property investor. I’m on a property newsletter and this came in which I have to alert all of you to…
Peter Esders, a property lawyer, said ‘Just to confuse things even more I was at a Budget review breakfast yesterday and the view of the speaker was that CGT may have a further rise in the normal budget in April. The coalition document states that they will raise CGT rates to ‘Similar or close to those applied to income’ and the budget the other day said that the rate for 2011-2012 will be decided by the Chancellor in the future.’
Something all property investors ought to keep in mind.
The tenant from hell: The woman wreaking a trail of havoc through south London’s rental properties
The Daily Mail had a great article entitled “The tenant from hell: The woman wreaking a trail of havoc through south London’s rental properties” which ALL landlords MUST read (note the emphasis!).
If you or your letting agent are approached by a black lady calling herself Rose Chimuka - or perhaps Emily Mapera, Rose Maetune or Emma Magonna and posing as a middle-aged housewife with three children and married to a man with a respectable job then be advised…. steer well clear! She seems to be operating in South-East London.
Tax Return Deadline
In 2008 I stressed out over the Christmas period preparing all of the paperwork needed for the looming tax return deadline. Two returns and a company return means I have a LOT of paperwork, receipts, bank statements to reconcile etc.
Last year, 2009, I was a bit more organised and stressed out about it BEFORE Christmas (getting better though!) and had the returns all done and the visit to the accountant before Christmans.
If you are like me, you will have spent at least some time over the last few months, or possibly the Christmas period, going through your paperwork for the dreaded tax return—and vowing that next year you will be more organised.
Many new landlords with perhaps just one property wonder if it’s necessary to do a tax return? The answer is “YES”, and you should do it even when you have made a loss. Any losses can be carried forward if these have been recorded with HMRC.
Being organised and having all the necessary paperwork to provide an audit trail is most important. If something is a little complicated, make a note of it separately and keep it on file as the faintest of ink is better than the best of memories (ancient Chinese saying).
The tax authorities are likely to come down hard on landlords that don’t comply with the tax rules. Always make sure you are ready for an investigation, as these often unnecessary fishing exercises by HMRC can be very time consuming, so be warned!
Remember – you need to do your Tax Return online by Sunday 31 January. If you are going to post it, make sure it reaches them by Friday 29th to be sure of not receiving a £100 late penalty fee. Better still, send it recorded or next day delivery to be sure. Make sure you visit www.hmrc.gov.uk/sa and do your 2008/09 Self Assessment Tax Return online by 31 January 2010.
For further help, including a ‘Step by Step’ guide to Self Assessment online filing and a bite-sized video, you should visit www.businesslink.gov.uk/hmrctaxhelp
Finally, start getting organised NOW for March 31st 2010 and aim to get the accounts and the returns done even earlier in 2010! I will be… will you?
Property Networking Events Around the UK
If you’re interested in making money through property, learning more about property, learning how to be a landlord and the legal aspects involved in being a landlord and, best of all, like meeting like-minded individuals all interested in the same thing as you, then you won’t go far wrong by attending at least one of the following networking events being held around the UK.
Due credit must go to Simon Zutshi for compiling this list. I get loads of invitations to attend these kinds of events but there are some on this list that even I didn’t know about! I’m posting the full list to you just in case you don’t receive Simon’s newsletter. Oh and by the way, Simon will be speaking at some of these events himself too [see the locations in BOLD italics]. So if you’ve never met Simon, go along and say hello.
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HUDDERSFIELD – Tuesday 1st September: Northern property network
http://www.northernpropertynetwork.co.uk/
CHATTAM – Wednesday 2nd September: David Lee talking about options
Click here for full details
CAMBRIDGE- Thursday 3rd September: David Lee talking about options
Click here for full details
IPSWICH – Monday 7th September: Ipswich Property Network
http://www.ipswichpropertynetwork.com/
MANCHESTER – Monday 7th September: David Lee talking about options
Click here for full details
NOTTINGHAM - Monday 7th September: East Midlands Property Networking Club. I will be sharing my new presentation “Property OPiuM”. Details here.
CARDIFF – Tuesday 8th September: Cardiff pin meeting
I will be sharing my new talk “Property OPiuM”.
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/cardiff.html
LEEDS – Tuesday 8th September: Leeds Property Network
http://www.leedspropertynetworking.com/
BRISTOL – Wednesday 9th September: Bristol pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/bristol.html
STANSTED – Wednesday 9th September: Launch of the Stansted Property Meet. I will be talking about Property Options.
http://www.stanstedpropertymeet.co.uk/
LONDON – Saturday 12th September: BMV Quick Start Seminar
In just one day learn how to buy property significantly below market value, how to use Property Options and how to make money trading property. http://www.bmvquickstart.com.
MANCHESTER – Sunday 13th September: BMV Quick Start Seminar
http://www.bmvquickstart.com
BIRMINGHAM – Tuesday 15th September: Birmingham pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/birmingham.html
MANCHESTER – Wednesday 16th September: Manchester pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/manchester.html
OXFORD – Wednesday 16th September: Oxford Property Meet
http://www.oxford-property-network.org.uk/
LEICESTER – Thursday 17th September: Leicester pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/leicester.html
BIRMINGHAM- Sunday 20th September: BMV Quick Start Seminar
http://www.bmvquickstart.com
MAIDENHEAD – Monday 21st September: Secrets behind the Property Mastermind Programme. This is before the Berkshire Property Meet.
http://property-mastermind.com/secretsbehindthepropertymastermind.html
MAIDENHEAD – Monday 21st September: Berkshire Property Meet
I will be speaking about how to “Work Less and Earn More”. SOLD OUT
http://www.berkshirepropertymeet.com/
COLCHESTER – Tuesday 22nd September: Essex Property Network
http://www.essexpropertynetwork.co.uk/
LONDON – Tuesday 22nd September: London pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/london.html
LEEDS – Wednesday 23rd September: Leeds pin meeting
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/leeds.html
CAMBRIDGE – Thursday 24th September: Cambridge pin meeting with Rick Otton
http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/cambridge.html
LONDON – Sunday 27th September: BMV Quick Start Seminar
http://www.bmvquickstart.com
WIGAN- Monday 28th September: Launch of the Wigan Property Network with me as the guest speaker. Full details here:
http://www.networkingpink.com/wiganevent.php
LONDON – Tuesday 29th September: London pin Special event with Rick Otton. Full details here: http://www.propertyinvestorsnetwork.co.uk/monthlymeetings/londonrickotton.html
I hope you can join us at some of these events.
OFT v Foxtons: OFT welcomes high court ruling on Foxtons’ use of unfair terms
Once you’ve read this post – leave a COMMENT! Was this interesting or not? Tell me!
Fantastic news for all landlords in the UK. I’ve just found out that the High Court has ruled on a number of actions raised by the OFT (against Foxtons Limited) which argued that many of the terms and conditions used by Foxtons Limited were blatantly unfair. The two main issues were:
a. charging renewal commissions on lettings after the initial AST period had expired, but not doing anything else for their fee, i.e. renegotiating a new rent fee with the tenant continuing in the property or managing the property and the tenant on a day to day basis (for this they charge alot more!)
b. charging landlords 2.5% fee for selling their property to their tenant, when they had NO hand in the eventual sales negotiation… it was purely a private transaction between the landlord and the tenant.
If you are a landlord and you are paying renewal commissions for tenancies that have gone “periodic” i.e. the initial AST has expired and you just let the property to the tenants on the same terms, conditions and rent amount, and the agent is NOT managing the property or tenant relationship, then you need to fight the agent and stop paying their fees for doing nothing. I did and my action has been vindicated by the High Court. Below is an extract from a law firm’s comment on the case and the URL to see the full article is here:
OFT v Foxtons Limited [2009] EWHC 1681; a case comment
By Izaz Ali
A successful challenge was brought by the Office of Fair Trading under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR) against the estate agents, Foxtons Ltd in relation to the latter’s terms and conditions of it’s lettings contracts.
The Unfair terms and the Court’s judgment
The High Court ruled that the term which meant that Foxtons could charge a repeat renewal commission which was inadequately communicated to the consumer and that these terms or terms which are similar should be highlighted in any and if possible all documents and leaflets which pertain to the said agreements. This conclusion was supported by the practical realty that a consumer (or one not legally trained) is unlikely to read the standard terms of an agreement and critically analyse each of those terms in relation to the relevant law under which such agreements are regulated.
Furthermore, and continuing with the theme of drafting contracts in plain and intelligible words the Court found that Foxtons failed to comply with this theme.
The ruling of the High Court confirms that not only must the terms and conditions of an agreement be drafted in clear and intelligible language but also terms which are likely to impact on a consumer financially should be communicated to that consumer before the contract is made. The effect of which would mean that any commission fees for example or charges will not come as a surprise to the consumer.
The OFT’s own website has been updated with their commentary, which can be found here.