The 60/40 plan is run by Nelson Home Investments Ltd; a company limited by shares in England and Wales (Company Number 9606681) and founded by Chris Nelson, a property investor with over ten years of industry experience. In the unlikely event of insolvency, your investment is contractually protected so you have first priority when it comes to asset recovery and …
Why can’t I keep my property in my name?
The Section 24 tax changes specifically apply to income from properties held by individuals or partnerships. To enable this strategy to work, the property must be transferred into the company structure. No individual owns the property, the company does as a separate legal entity. All decisions regarding the property are then made by the company in consultation with investors, of …
What guarantees have I got?
You are contractually guaranteed to receive a 60% share of all profits from rental, refinance and sale for the life of the property. Any major decisions, such as the sale of the property, will be made by the company and its investors. As we have ringfenced each property, there is only one investor – you. No major decision (such as …
Why should I do this now? From my calculations I could be better off paying more tax for a couple of years yet.
Thanks to the scaled rollout of the 60/40 plan that is designed to parallel the scaled rollout of Section 24, you will benefit from our service from day 1 (when compared with your current position) You will not actually see this difference immediately, as the impact of increased income tax is not felt until the end of the financial …
Why does this only affect higher rate tax payers?
Section 24 changes the way income tax is calculated on property income. Before, and in accordance with GAAP (Generally Accepted Accounting Principles), your taxable income was calculated on a simple INCOME – COSTS calculation, whereas now taxable income for landlords is more INCOME – ONLY CERTAIN COSTS BUT The difference is that a 20% relief rate is added. So for …
Can I keep my tenants?
As long as your property is currently being let with a positive cashflow, there is no reason to change tenants.
What about my managing agent, if I have one?
As long as they are managing the property effectively, then we would try to keep them. In fact, it makes our life easier if we do
I manage the property myself. Can I continue to do so?
As long as you are prepared to manage it fully, then yes. We can agree on a rate to pay you for this service (as we would be saving on managing agent fees) or you can benefit from the higher profits from rental income.
About the 60 / 40 Plan
The 60/40 plan is our solution to the challenges and extra tax burden faced by landlords in the private rental sector imposed by Section 24. If you are not familiar with these challenges and their implications, please read over our Section 24 Article.