Currently viewing the tag: "duty"
Landlord Details Must Be Included In Prescribed Information

Landlord Details Must Be Included In Prescribed Information

All UK Landlord details should be correct
before being included in Prescribed Information

The information must be included, even when the rental property is fully managed by a managing agent, to avoid any possible legal problems with tenancy deposits.

Linda Howard, of Shoosmiths solicitors has warned that individual judges could make different interpretations on the wording of requirements after the news that a possession order was overturned because the legally required Prescribed Information gave the letting agent’s details instead of the landlords.

She said: “The Housing (Tenancy Deposits) (Prescribed Information) Order (2007) seems to make it clear, at 2, (g) (iii) that the name, address, telephone number and any email address or fax number of the landlord, not the agent, must be given.”

Ms Howard also pointed out that in another case in the county court, a duty solicitor raised exactly the point of an agent’s rather than the landlord’s details being given and the judge subsequently adjourned those proceedings because of seeming non-compliance with the Prescribed Information Order. However, the case went through on the second hearing because the landlord argued that Rules of Agency applied.

Continue reading »

The UK Health and Safety Executive (HSE) has issued new guidance for landlords and letting agents to control the threat of legionnaire’s disease to tenants.

The HSE want landlords or their managing agents, to carry out risk assessments for legionnaire’s disease, and if necessary, take action.

The revised Approved Code of Practice: “Legionnaires’ disease: The control of legionella bacteria in water systems,” underlines the legal requirements for landlords and managing agents to ensure that the potential risk to tenants from exposure to the legionella bacteria from all water systems in UK PRS residential rental properties is controlled.

The new guidance insists that landlords and property management / lettings agents must carry out risk assessments to identify and assess potential sources of exposure, and steps take to prevent or control any risk that is identified and record details on all aspects of their risk assessment controls, keeping records for at least five years.

Landlords and property managing agents need to be aware that the legionella bacteria can thrive and multiply in hot or cold water systems and storage tanks, and be spread throughout the property by showers and taps.

Risk assessments should include assessing whether conditions are right for bacteria to flourish and the following items should all be checked or inspected:

  • In water temperatures between 20C and 45C.
  • Water Storage Tanks, (inc header tanks)
  • Thermostatic mixing valves
  • Debris in the system
  • Infrequently used outlets
  • Areas of stagnant water

Steps taken to control the threat of legionnaire’s disease include disinfecting the system, ensuring water cannot stagnate anywhere, insulating all pipework, and keeping water tanks and cisterns free of debris and covered at all times.

Tenants should also be advised about potential risks and told to take precautions such as flushing through showers they rarely use.

Anyone with concerns can contact their local Health and Safety Executive (HSE) office or Local Authority Environmental Health Department.

Her Majesties Revenue & Customs is set to mount a court challenge to determine the legality, or otherwise, of stamp duty tax avoidance schemes.

Central to the challenge will be the use of limited companies to buy properties, and then sell them to individuals – something which does appear to be completely legal.

Essentially, the purchaser sets up a Special Purpose Vehicle, a company or a trust with a property as its sole asset. The purchaser then buys shares in the company and is subjected to a tax rate of just 0.5%.

There are many companies offering stamp duty tax avoidance: a Google search yielded over 3,200 results.

The taxman’s move follows this year’s Budget when Chancellor George Osborne announced that he would be clamping down on stamp duty avoidance, whilst law firms have also warned that HMRC is on the prowl.

HMRC estimates the tax avoidance schemes have cost it millions in lost revenue. It is investigating 1,200 people it suspects of having underpaid stamp duty by a collective total of £35m, whilst it will also go after others who have avoided the tax altogether.

The many schemes that claim to legally exploit stamp duty loopholes frequently charge fees of around half the amount that would have been paid in tax.

It is thought that a number of property investors have set up a limited liability company to buy the property to sell back to the individual.

An HMRC spokesperson said: “The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept.”

Many Law firms have also warned against avoidance schemes of Stamp Duty Land Tax (SDLT).

Ian Montgomery, a solicitor at Boodle Hatfield, said: “There is a growing belief that it is possible to avoid paying stamp duty on the purchase of a property or land, but unless particularly aggressive tax planning is undertaken that is just not the case. It is a common misconception that it is possible to purchase a property using a company and avoid stamp duty. When a property is purchased through a company, whether based offshore or in the UK, it pays the same rate as if it were an individual. SDLT may be avoided by future purchasers when the company decides to sell the property. This is done by the owner selling shares in the company rather than the property itself, but SDLT will be paid on the initial purchase.”

Stamp duty on the purchase of shares stands at 0.5%, rather than the higher rate levied on property. If the company is based offshore, the purchase of shares is exempt from stamp duty entirely.

People who try to reduce stamp duty by paying separately for fixtures and fittings may have to prove to the taxman that what they paid for these assets did not exceed their true value

Tagged with:
 

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!