Episode 27 - Taxes When Buying or Selling at Property Auctions

Ruban Selvanayagam from quick sale specialists and regulated auctioneer Property Solvers speaks again with Simon Misiewicz, founder of Optimise Accountants – delving into the nitty-gritty of property taxes when buying and selling auctions.   Simon runs through his initial thoughts on Chancellor Rachel Reeves' October 2024 budget and its impact on landlords and property investors. He goes on to discuss the increased Stamp Duty Land Tax (SDLT) rates alongside how to leverage exemptions and reliefs to minimise your tax liability as an auction buyer.   Simon also shares insights on tax saving strategies for auction buyers like buying uninhabitable or mixed-use properties, commercial acquisitions and navigating the pros and cons of purchasing property portfolios via limited company and other corporate structures.     The discussion also touches on tax-deductible costs and some tips if you're selling at auction – particularly with regards to Capital Gains Tax (CGT) when selling personally-owned properties and Corporation Tax with assets owned in a Limited company.   #propertyauctionstax #tax #buyingatauctiontax #sellingatauctiontax #propertyauctions  

LINKS (RESOURCES) REFERRED TO IN THE PODCAST

Optimise Accountants

Optimise Accountants Youtube Channel

Follow Simon Misiewicz on LinkedIn

RELEVANT LINKS

Property Solvers Investor Profiling

Become an Auction Partner

Property Solvers (Sell House Fast)

Property Solvers (We Buy Any House)

Property Solvers Auctions

Property Auctions News

How to Value Your House

 

TIMESTAMPS

00:10 - Introduction to Simon Misiewicz (of Optimise Accountants) and tax implications for auction property transactions 00:32 - Impact of the Labour (October 2024) budget on landlords and property investors 02:03 - Shift in the market as amateur landlords sell and the industry professionalises 02:12 - Key features of the budget affecting property investors and auction buyers 06:03 - Overview of the revised stamp duty regime 07:18 - New 5% surcharge for UK  property investors and auction buyers and its impact 10:00 - Stamp duty relief when buying multiple properties 12:08 - Mixed-use properties and their Stamp Duty advantages 14:45 - Saving on stamp duty for uninhabitable properties 17:26 - Exploring chain break properties and their tax implications 19:24 - Importance of consulting accountants before buying property at auction 20:32 - Claiming stamp duty rebates retrospectively 22:03 - Stamp duty rules for commercial acquisitions and land purchases at auction 25:18 - Minimising taxes when acquiring properties at auction 28:38 - Buying TLC properties and leveraging refurbishment for tax relief 30:21 - Using BRRR strategies and tax considerations for limited companies 31:31 - Offsettable costs when buying properties at auction 33:41 - Tax treatment of costs for companies vs. individuals 34:09 - Capital Gains Tax strategies for landlords selling personally owned properties 36:58 - Common mistakes in calculating Capital Gains Tax 38:52 - Keeping records of transactional costs to reduce tax liabilities 40:04 - Buying properties through companies and tax advantages 41:24 - Due diligence when acquiring companies with property assets 42:56 - How t