Shaz deep dives into the commercial conversion strategy - everything from how long the process should take, to the regulations and expectations involved in what can be one of the most lucrative forms of property investment strategy. KEY TAKEAWAYS A commercial conversion is the purchase of a formerly commercial property, and its conversion into a set of residential properties, either increasing or decreasing the number units within. Eighteen months is a sensible time period to aim for when it com...
Apr 03, 2023•22 min•Ep. 282
Property investing can be one of the most satisfying and most lucrative forms of business - so why then do some fail? In this episode, Shaz breaks down the main reasons why some investors don't make the cut. KEY TAKEAWAYS A small contingent of investors make huge sums of money, most find themselves just about making ends meet, while another group fail completely. Those who succeed are generally in possession of information, guidance and education, so that they can best take advantage of opportun...
Mar 27, 2023•10 min•Ep. 281
In property, you always have to make sure that the numbers add up or a deal might not be worth doing. In this episode, Shaz talks you through rental yield, the first factor you should take into consideration before pulling the trigger on a deal. KEY TAKEAWAYS Rental yield is a term used by landlords all the time, but many do not realise what it really means. The gross rental yield of a property is the annual income expressed through a percentage of the property's purchase price or value. The cal...
Mar 23, 2023•8 min•Ep. 280
Shaz discusses two new important changes to tax regulations, including Option To Tax and the new VAT penalty regime, which may cost you dearly. KEY TAKEAWAYS An Option To Tax is when somebody brings a commercial property into the VAT regime, meaning that the costs of refurbishment can be claimed back from HMRC. From the 1st February 2023, HMRC implemented changes . The first change is that HMRC will stop issuing OTT notification receipt letters. BEST MOMENTS 'They opt to tax for the property, wh...
Mar 21, 2023•9 min•Ep. 279
Shaz talks about the many tax benefits and disadvantages offered when conducting business through either an investment business and a trading business. KEY TAKEAWAYS An investment business is where you buy an asset and rent it out or get some form of income from it. Buy to let is investment, whereas commercial conversion is trading. Deal packaging comes under a trading business, and so is serviced accommodation. The government does not incentivise people to become investors, and so the tax benef...
Mar 16, 2023•18 min•Ep. 278
Shaz explains the multifaceted agreements that should be in place between shareholders when varying types of businesses are founded and developed. KEY TAKEAWAYS When two parties have a partnership, the LLP files a tax return but each party pays their respective tax bills. You pay individually. In March or April of 2024, full disclosure must be made at Companies House, meaning that true transparency may be seen by all BEST MOMENTS 'Corporation tax rates are different to personal tax rates' 'That'...
Mar 14, 2023•11 min•Ep. 277
Shaz talks about different ways to structure a property investing business, with a focus on limited companies, and why you need to know all about them. KEY TAKEAWAYS When a limited company is formed, it appears at Companies House so that transparency can be sought. If secrecy is preferable then a limited company may not be right for you. Requirements of a limited company include directors, at least one shareholder. The director and shareholder tend to be the same person. BEST MOMENTS 'If being s...
Mar 09, 2023•9 min•Ep. 276
Coming to you specially from a live seminar, in which he answered the burning questions of an audience, Shaz talks about alphabet class shares - how to distribute them, and what they mean. KEY TAKEAWAYS Whatever the ratio of ordinary share capital you own, your dividend has to be in line with this - IE: 51% shares of £100,000 means you receive £51,000. Alphabet shares mean that you can distribute share dividends in a different way. Percentages of A Class shares and B Class shares can be divided ...
Mar 07, 2023•9 min•Ep. 275
In this episode, Shaz shares eight important tips you ought to know about as a first time buyer, that'll get you on the property ladder in no time at all. KEY TAKEAWAYS Look at the ideal home you want, and plan to buy it at some point in the future. As a first time buyer, the home you want, isn't necessarily the one you can afford at the beginning. Property investing is a journey. Each purchase and sale is a step on the ladder, and each step takes you higher towards the property you want to end ...
Feb 28, 2023•17 min•Ep. 274
What is the difference between a trading holding company and an investment holding company? In this episode, Shaz talks you through the answer to this question. KEY TAKEAWAYS A holding company is a limited company including individuals that are shareholders. They may have different companies for different reasons so as to keep their interests separate. An investment company is where you are buying property and holding onto it. There can be many reasons for this. BEST MOMENTS 'They want to do pro...
Feb 23, 2023•5 min•Ep. 273
Shaz explains Land Remediation Relief, including when it is applicable, how it can benefit you, and the regulations you need to watch out for. KEY TAKEAWAYS You only get land remediation relief if you are buying a property through a limited company, and if it is going to be a trading business and not an investment business. If you are an investment business, you cannot claim this relief. It also cannot be claimed if you buy in your own name. BEST MOMENTS 'If I get a discount to buy this property...
Feb 21, 2023•6 min•Ep. 272
Shaz talks about capital allowance pools and how they work, with a focus on capital allowance and property investing. KEY TAKEAWAYS You can claim less than 18% of your plant and machinery pool, but you may not exceed 18% when claiming. If you don't create a taxable loss, then numbers may be reduced the following year, so it's always wise to claim the full amount where possible. BEST MOMENTS 'The rate is determined by the government' 'You create a taxable loss and carry it forward' VALUABLE RESOU...
Feb 16, 2023•7 min•Ep. 271
With serviced accommodation becoming one of the most popular property investing types, Shaz tells you the best way to structure your business and how it operates. KEY TAKEAWAYS If you have an LLP and you make £500,000 profit and you don't take any money out of the business, you will pay tax on everything. If, however, you pay the capital allowances, you will pay no tax on this sum. BEST MOMENTS 'The bank always asks for the financials!' VALUABLE RESOURCES shaz@aaa-accountants.co.uk ABOUT THE HOS...
Feb 14, 2023•15 min•Ep. 270
Shaz talks you through the complete process when it comes to claiming back VAT when it comes to property investing and when it most effectively applies. KEY TAKEAWAYS Once new units are created, they become zero-rated for VAT purposes, and so any VAT claimed will not need to be repaid. You cannot reclaim VAT if you are hoping to rent out properties, because you cannot charge VAT on rent itself. BEST MOMENTS 'Because they've sold the flats they can keep the VAT' 'Rent is an exempt supply' VALUABL...
Feb 09, 2023•10 min•Ep. 269
Shaz talks you through the best ways to ensure you remain compliant when bringing new shareholders into your business. KEY TAKEAWAYS Shareholders can be created by investing money directly, or by using their own holding company. This creates two holding companies, and adding flexibility to the arrangement. Holding companies also provide an extra level of protection to you and other shareholders. BEST MOMENTS 'Now you have two holding companies' 'Can you see the flexibility?' VALUABLE RESOURCES s...
Feb 07, 2023•6 min•Ep. 268
When talking about the control of a company, it can be tricky to decide who requires what in order to retain a controlling interest. In this episode, Shaz explains it all! KEY TAKEAWAYS It's wise for the party who wants control to ensure they have 51% of the shares which makes you ahead in voting rights. Shareholders agreements are vital in order to make sure that when an impasse is reached, progress can be made. BEST MOMENTS 'You have control of the voting rights' 'It's extremely important to h...
Feb 02, 2023•6 min•Ep. 267
How should you structure your business for flexibility? Shaz looks at a commercial conversion case study and explains the different company structures and the tax implications He also shares great advice on having a holding company and why this is the key to flexibility KEY TAKEAWAYS Keeping the commercial conversion projects in different companies means they don’t affect each other Once you have done a transaction close the company down and move the money to the next one When you close a compan...
Jan 31, 2023•11 min•Ep. 266
Shaz discusses the thorny subject of when and how to buy shares internally when it comes to a business - from where to find the money to do so, to how to make sure you remain compliant at all times. KEY TAKEAWAYS Most small businesses tend to be born from a family concern, with the parents founding and the children assuming the reins later. Using a dividend in order to fund the acquisition of more shares is possible, but requires you to consider the tax you'll also be paying. Adjust the sum acco...
Jan 26, 2023•12 min•Ep. 265
Shaz explains Investor's Relief, a more flexible version of Entrepreneur's Relief, and when it can be best deployed in order to save you more money! KEY TAKEAWAYS Investor relief works very similar to entrepreneur's relief but is actually more flexible. Investors keep their money is a deal for three years. After this period, up to the first ten million pounds of uplift is charged only 10% tax. BEST MOMENTS 'This way you tie them in, they're engaged' VALUABLE RESOURCES shaz@aaa-accountants.co.uk ...
Jan 24, 2023•5 min•Ep. 264
Shaz explains Business Asset Disposal Relief (BADR) - when it can be used, and why you should look to it when selling a business. KEY TAKEAWAYS If you run a business for five years and have at least 5% of the share capital - if you sell it you can claim entrepreneur's relief up to the first million pounds. If you charge rent on the business, then you can't charge Entrepreneur's Relief as it then becomes an investment activity. BEST MOMENTS 'Where possible, you want to make sure that you can util...
Jan 19, 2023•9 min•Ep. 263
Shaz talks you through a practical example about how to better understand VAT and capital allowances, and the benefits that can be achieved when converting from commercial to residential. KEY TAKEAWAYS When looking to buy a property it is wise to find out about the exact VAT situation. When you make the offer, make it clear that you want to convert from commercial to residential, and ask if they will accept a VAT 1614D. Elements of a building that are subject to capital allowances are any part o...
Jan 17, 2023•11 min•Ep. 262
Shaz explains the differences between an investment company and a trading company, and how the approaches to buying properties for each will require different schools of thought. KEY TAKEAWAYS If you buy a property, hold on to it, and rent it out, then this an investment purchase. if you buy a property, do something to it and then trade it, this is a trading purchase. Serviced accommodation property investments are treated as a trading deal, as you are selling a product to a client each time it ...
Jan 12, 2023•9 min•Ep. 261
Depending on the properties you buy and the way you buy them, you may be able to claim certain reliefs. In this episode, Shaz talks about an instance from his own investing history that best illustrates these differences. KEY TAKEAWAYS Even the difference of just £100,000 on a property worth over a million pounds, can dramatically increase your rental income potential. When you are doing your first deal, you have to compromise the margin. The less experience you are, the bigger the margin you ne...
Jan 10, 2023•9 min•Ep. 260
Investing in property is an exciting journey, but there can be pitfalls along the way. In this episode, Shaz talks about the current state of the housing market and what you need to watch out for in order to ensure your continued success. KEY TAKEAWAYS Quantitative easing is coming to an end, so we are seeing large upheavals in the financial sector, including interest rates, which can affect property investors The Bank Of England's mandate has trumped its obligation to control inflation and righ...
Jan 03, 2023•16 min•Ep. 259
Considering how to change and tailor your portfolio to the ever-changing circumstances is something we should always keep on top of. but should we ever stop buying property altogether? In this episode, Shaz talks about the way you should be thinking about this question. KEY TAKEAWAYS Property is a liquid asset and it takes time in order to sell it and convert it into cash. Selling property can be difficult and time consuming. There are many fees when it comes to buying and selling a property, ab...
Dec 29, 2022•15 min•Ep. 258
When embarking upon the serviced accommodation route in property investing, it's always wise to keep ahead of the costs and rates you might be facing. In this episode, Shaz discusses them all, and how you can best maximise the profits you make. KEY TAKEAWAYS Classifying your property as a furnished holiday let will allow you to take advantage of several tax benefits that do not apply to other forms of SA. The more services that you offer, the closer you move towards a general serviced accommodat...
Dec 27, 2022•14 min•Ep. 257
Getting started on the property ladder doesn't have to be a complex as you have been led to believe. You can begin your journey without first amassing a fortune of your own, and in this episode, Shaz explains exactly how to do it. KEY TAKEAWAYS So long as you're planning to work hard and dedicate yourself to property investing, then there's no reason why you shouldn't succeed. Find a partner who has the finances and apply your knowledge, expertise and willingness. Together you can turn a house s...
Dec 22, 2022•14 min•Ep. 256
SDLT is one of the most misunderstood taxes, but if clarity is provided then it can be a useful tool in your financial journey. In this episode, Shaz explains SDLT exemptions and reliefs that'll allow you to pay zero! KEY TAKEAWAYS An SDLT isn't as well understood as it should be, but if properly viewed, it can provide you with exemptions and reliefs that'll alleviate your finances considerably. If you occupy your house in the last two years, and sell it to a development company as part of a pla...
Dec 20, 2022•11 min•Ep. 255
Shaz shares the most common misconceptions and myths surround property investing, and how to make sure you're keeping ahead of the rumours and untruths that might be holding you back. KEY TAKEAWAYS The property pricing cycle always follows a boom-and-bust model. A steady increase will always be followed by a decline - history has proven this. Prices do go down! It isn't just the wealthy who are able to invest in property. You can invest heavily using other people's money, and massive deposits ar...
Dec 15, 2022•16 min•Ep. 254
Is there a limit to the size that your ideal portfolio should be? In this episode, Shaz talks you through what you need to think about as you grow, what your business should look like, how much income you need. Remember, that size doesn't matter! KEY TAKEAWAYS It always pays to think about the size of the business that you're trying to build. Many investors build significant portfolios that leave the teetering on the edge of bankruptcy from time to time. Smart investors can be sometimes excessiv...
Dec 13, 2022•17 min•Ep. 253
