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 to connect with  Simon Misiewicz and Optimise Accountants