Tax Saving Projects
Clients have been asking us for some time for advice to help them keep their hard earned profits in a safe and secure manner that both complies within a legal framework and a secure environment.
We are now able to design a number of different solutions to clients and working with other leading professional providers we are able to tailor a number of propositions that will enable clients to save tax efficiently and build up wealth in a safe and secure manner not only for themselves but for future generations.
Some of the schemes we are currently working on:-
Business Property Renovation Allowances (BPRA)
This is a government backed scheme to enable subscribers to invest in depressed areas in the UK. These are sometimes referred to Enterprise Free Zones.
The scheme organiser will form a syndicate with a number of investors who will then boy and renovate a property qualifying for BPRA. The organiser will also arrange for borrowing to boost the funds invested. This could be a multiple between 1.5 and 2 times. If you invested £50,000 the actual borrowing amount invested by you to renovate the property could amount to £150,000.
The syndicate receives 100% tax relief on the money it spends on the renovation. So if your share was £50,000 you will obtain tax relief at your highest rate which could be 50% in the year 2010-2011. You would therefore receive a tax refund of £25,000.
The property is rented out and income is used to meet the syndicate loan and other running costs. At the end of seven years (the minimum period that this investment is intended) the syndicate usually sells the property and you will receive your share of invested. Based on previous returns it is estimated that the return on this type of investment can be around 7% per annum but as always values of properties can go up or down.
Private Pension Scheme
If you have a pension pot valued in excess of £35,000 and need the funds for any reason, we are able to unlock this and if you wish the amount can be loaned back to you.
Stamp Duty Land Tax
Following the latest budget announcement regarding the abolishment of SDLT on properties up to a value of £250,000 the chancellor has increased the percentage rate payable on properties purchased over £1 million to 5%
We have a scheme provider that will enable a purchaser to avoid SDLT on all property purchases in excess of £350,000.
We are continuing to explore many different aspects of tax saving and tax mitigating products. Please do not hesitate to contact us for more details and your requirements.