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Post by naughtyfox on Jul 24, 2020 18:55:05 GMT
Probably. Only thing I know is Manila is a type of natural fibre rope. Your tax demand comes in a manila envelope, I have wondered why this is so. Were envelopes made from a fibre? The Manila envelope is a specific colored envelope designed for transporting documents. It is made of thick, durable Manila paper and sized so that full sheets of paper can fit inside without being folded. As with the Manila folder, it is traditionally buff in color, and often has a mechanism on the closing flap that allows it to be opened without damaging the envelope so that the envelope can be re-used. Manila paper is a relatively inexpensive type of paper, generally made through a less-refined process than other types of paper, and is typically made from semi-bleached wood fibres. Manila paper was originally made out of old Manila hemp ropes which were extensively used on ships, having replaced true hemp. The ropes were made from Manila hemp (also called abacá) or Musa textilis, which is grown in The Philippines; hence the association with Manila, the capital of that country.
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Post by Clinton Cool on Jul 24, 2020 21:51:09 GMT
Having involved myself in research all day and pored over figures, things are finally looking up. I've realised I can afford to take a hit with capital gains tax so, both my remaining houses will be going up for auction in September, with realistic reserve prices. I'll fix the floor first though, I know many wouldn't. Getting rid of them will be a massive weight off my shoulders and if I'm lucky with timing, they complete before the Welsh cottage does, I'll avoid £4K in 'higher rate' stamp duty.
Finally, a glimpse of light at the end of a long dark tunnel.
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Post by thebfg on Jul 25, 2020 1:24:00 GMT
Oh eck lots of doom and gloom. Corona virus may be the new normal, but my new normal is for a new disaster to occur around once a month. So far this year, since I got back from holiday: An agreement to sell a house I own fell through Another agreement to sell the house fell through The gun toting African drug dealer trashed the house Finally sold the house for 17% less than the original agreed price Agreed to buy a house in Wales, things are looking up! However, it transpires that because I own other houses, and live on a boat, I'll have to pay an extra 3% stamp duty on the purchase. If lived in | house and sold it, I would not have to pay this. And finally: tenant reported a problem with a floor. Turns out there's a foot of water in the crawl space. £6K to fix it, all joists and flooring to replace. Insurance doesn't cover it. Source of water unknown, may find out next week when water company visits but it's possible that the leak isn't on my property. There would then be the nightmare job of trying to oblige 5 other private owners in the terrace to check their own houses. I have absolutely no idea how that might happen, other than getting court orders. So, it's been a shitty year so far, in the extreme. If it is another household will your insurer help claim of them.
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Post by patty on Jul 25, 2020 5:24:29 GMT
Having involved myself in research all day and pored over figures, things are finally looking up. I've realised I can afford to take a hit with capital gains tax so, both my remaining houses will be going up for auction in September, with realistic reserve prices. I'll fix the floor first though, I know many wouldn't. Getting rid of them will be a massive weight off my shoulders and if I'm lucky with timing, they complete before the Welsh cottage does, I'll avoid £4K in 'higher rate' stamp duty. Finally, a glimpse of light at the end of a long dark tunnel. Good..lets face it if u can do without the stress of tenants in houses its a good thing.. Move to your Welsh cottage and enjoy life.
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Post by Deleted on Jul 25, 2020 7:16:05 GMT
When we bought our present house we had to pay £9k excess stamp duty as we hadn't sold our previous house. However this was refunded as we sold the old house within three months of completion on the new house so could claim it back. Its worth checking if it applies to you.
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Post by Clinton Cool on Jul 25, 2020 8:37:20 GMT
When we bought our present house we had to pay £9k excess stamp duty as we hadn't sold our previous house. However this was refunded as we sold the old house within three months of completion on the new house so could claim it back. Its worth checking if it applies to you. Cheers yes. It used to be 3 years, but may have changed. The requirement is very specific though. You can only reclaim the extra stamp duty if you sell the previous home that you lived in (main residence). Boats aren't classed as homes. Similarly if you're renting, that doesn't count. Also, if I dispose of all my properties within 3 years (or perhaps 3 months if it's changed) I can't reclaim the tax. The only way I can avoid this is if I dispose of all of my properties before I complete on the purchase. That's where the auction comes in, must be completed within 28 days of buyer loses their 10% cash deposit.
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Post by Deleted on Jul 25, 2020 9:29:46 GMT
I may have had the time period wrong don't remember it being as long as 3 years but...........it may well have been. That was last year, a lot has happened in the last 12 months.
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Post by JohnV on Jul 25, 2020 12:20:20 GMT
bump above the troll
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Post by quaysider on Jul 25, 2020 13:38:18 GMT
lol I've only just found this thread and was ABOUT to add my woes ... But then I remembered, I've been posting them over various threads all year ;-) AND I suspect it will continue as things continue to feck up along the way As you were....
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Post by Clinton Cool on Jul 25, 2020 18:22:03 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this:
Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it.
Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this.
This seems to be the best plan. What could possibly go wrong?
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Post by patty on Jul 25, 2020 19:04:12 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this: Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it. Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this. This seems to be the best plan. What could possibly go wrong? I'm sure something could..but hopefully all will be well
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Post by quaysider on Jul 25, 2020 19:46:57 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this: Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it. Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this. This seems to be the best plan. What could possibly go wrong? Right now mate, I'd swap places as I'm on my arse lol. Still, I hope the plan works out for you - I've got 12 years to cover before I can get hold of my (modest) pension... and clinging onto my bungalow (and paying the mortgage until then) is going to take my best efforts. IF we get a covid 19 reprise next year, it's goodnight Vienna. ETA - as I pressed "post" my phone pinged with a booking for April so that's a step in the right direction....
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Post by Deleted on Jul 25, 2020 20:05:25 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this: Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it. Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this. This seems to be the best plan. What could possibly go wrong? So you have devised a complex plan that means you need several things to go right to avoid an extra £4k tax bill but will also incur an extra £4k tax bill - am I right?
Buy the cottage and keep decisions on the different properties separate - auctions can be good but you also might make an extra £4k by going through more usual channels - give yourself time to sort things out once some progress has been made is my advice.
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Post by Clinton Cool on Jul 25, 2020 22:37:08 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this: Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it. Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this. This seems to be the best plan. What could possibly go wrong? So you have devised a complex plan that means you need several things to go right to avoid an extra £4k tax bill but will also incur an extra £4k tax bill - am I right?
Buy the cottage and keep decisions on the different properties separate - auctions can be good but you also might make an extra £4k by going through more usual channels - give yourself time to sort things out once some progress has been made is my advice.
It's good advice but I probably didn't explain the level of stress all this has caused. So much so that I don't really care if I don't get the best price for the houses. There's more as well, an incompetent and dishonest agent, a legal system that took my money, couldn't do the work because of covid then refused to refund me. I want out and that's it. I'd like to avoid the extra stamp duty, this is grossly unfair, but if I have to pay it, so be it.
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Post by Clinton Cool on Jul 25, 2020 22:41:11 GMT
Right, after hours of thinking through different ideas, binning them, having more ideas and so on I think I've finally come to a solution. The objectives are to rid myself of the terrible stress that my buy to lets are bringing on me without putting myself in a situation that I'm forced to work before my pension kicks in. And if possible, avoid paying the £4K extra stamp duty I have to pay because I own other houses. It goes something like this: Purchase of Welsh cottage should complete around early October, if all goes well. Put 2 remaining buy to lets into an auction with lowish reserve prices on 6 September. Any buyers pay 10% deposit on the fall of the hammer and then have 28 days to complete. If not, they lose their deposit. I may need to delay completion of Welsh cottage by a few days to enable this to happen, hopefully this won't scupper it. Doing this will cost an additional £4K in capital gains tax because I'll be pushed into the higher earning bracket, so an element of it will be at higher rate. This is compared to what I'd pay in tax if I sold one now, and one next year. However, I'd be saving roughly the same by avoiding higher rate stamp duty. So overall, no cost to this. This seems to be the best plan. What could possibly go wrong? Right now mate, I'd swap places as I'm on my arse lol. Still, I hope the plan works out for you - I've got 12 years to cover before I can get hold of my (modest) pension... and clinging onto my bungalow (and paying the mortgage until then) is going to take my best efforts. IF we get a covid 19 reprise next year, it's goodnight Vienna. ETA - as I pressed "post" my phone pinged with a booking for April so that's a step in the right direction.... I should add that I'm only into the top bracket of tax because I'll have sold 3 houses that I've owned for 7 years, tax is due on the increase in value, plus rental income. Rental income is usually around £12K a year, I aint no high roller!
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