HRMC Advises Investors to Seek Property Tax Help
April 9, 2008
HM Revenue & Customs (HMRC) investigators are now focusing on property investors. Several hundred property investors received letters from HMRC stating that apparently they have not included their rental income on their tax returns even though they own rental property. The HMRC offered property tax advice to the affected parties to rectify their affairs.
HMRC’s officials stated that continuing profiling activities have been identified. Whether by mistake, misunderstanding of the complex property tax issues, or misinformation there is a considerably high risk of property tax being underpaid by investors. The HRMC insists to collect the right amount of tax and strongly recommended investor to seek property tax help of a property tax consultant.
Popularity: 21%
How to Lay a Laminate Floor
April 7, 2008
You need some DIY experience for laying a laminate floor. It’s crucial that the laminate boards are laid on a dry, leveled surface so ensure that you fix any loose floorboards, and clean damp areas or woodworm problems before installing your new floor. Get professional if necessary.
Time to complete job: Two or three days for a small to medium-sized room.
Approximate budget: From about £10 per square metre.
Materials and equipment needed to lay a laminate floor:
- Laminate floor packs
- Underlay
- Adhesive
- Craft knife
- Drill
- 20mm (7/8in) wood bit
- Panel saw
- Tape measure
- Spacer blocks
- Fitting tool
- Edge block
- Hammer
- Try square
- Panel pins
- Timber edge moulding
First Steps
If you’re laying a laminate floor in a kitchen or bathroom suite check if the laminate floor is water tight before you buy it, most laminate floors are hard wearing but only certain types are suitable for bathrooms and kitchens.
Look for lock-together laminate boards that doesn’t need gluing, they’re easier and quicker to install.
Step 1: Preparing the floor
Take off the skirting boards. You can replace them later on top of the laminate or add timber mouldings to hide the edges of the new floor.
Remove any grit from the floor with a vacuum.
Roll out the first two strips of underlay along the longest straight wall, starting in one corner.
Cut the underlay with a craft knife.
Tip: Take off any inward-opening doors to make the job easier.
Step 2: Laying the first row
To allow the laminate to expand as the room is heated, place plastic spacers every 60cm (24in) along the longest straight wall and lay the first row of boards with the groove side facing the wall, starting from a corner.
Squeeze a bead of glue along the tongue and groove joints at the ends of the boards.
You will probably need to cut the last board of the row to fit. Mark a line across the piece with a try square and saw with the finished surface facing up.
Step 3: Laying and fitting
Continue laying the laminate across the room. Begin the second row with the off-cut of the board used at the end of the first row.
Stagger all the end joints by at least 30cm (12in) and use a fitting tool to pull the ends of the boards together.
Make sure the edges of the boards are forced together by gently tapping the edge block against the grooved side of each board.
Step 4: Working around fixtures
Cutting boards around doorways can be fiddly. Instead, saw a piece from the bottom of the door architrave to the thickness of the laminate - the board can then be fitted under door frame.
Drill holes in the laminate boards to fit around any pipework - make sure the hole is at least 5mm (0.2in) larger than the diameter of the pipe. Make two saw cuts from the edge of the board to the hole. Fit the board in place and glue the small off-cut wedge behind the pipe.
Step 5: Finishing
The last row of boards may need to be cut to fit. Measure the gap between the boards and the wall, deduct 10mm (0.4in) to allow for the expansion gap and saw the boards lengthways to the width required.
Glue the joints and fit.
Replace the skirting boards or fix a timber moulding over the expansion gap around the edge of the floor.
Fix the moulding to the skirting board with 30mm (1.2in) panel pins and paint or varnish.
Finally, fit a metal or wooden threshold across the door openings.
Popularity: 28%
Halifax to Raise Mortgage Rates
April 4, 2008
Halifax has announced that will raise mortgage rates for customers with smaller savings, starting from next Monday.
Homeowners who haven’t saved at least 25 per cent of the value of their property will pay 0.14 per cent extra, on top of the main interest rates.
In the other hand Halifax will encourage borrowers into putting down bigger deposits by reducing the rates by 0.1 per cent if they have a deposit of 25% or more.
In contradiction to rumours that Halifax was about to follow rival First Direct and stop borrowing to first time buyers. Halifax has revealed that will launch a range of mortgage deals for first time buyers, including a five year fixed rate deal at 5.69 per cent for 90 per cent of the property value.
Popularity: 9%
Scottish Buy to Let Market is Excellent
April 3, 2008
One property expert claimed the the buy to let property market in Scotland has superb prospects.
According to David Kendal of the National Landlords Association (NLA), rental prices are increasing meaning there is better scope for profit in the Scottish buy to let sector.
It’s known that the credit crunch made it hard to get a buy to let mortgage, however some landlords may benefit from this phenomenon. Mr Kendal added:
A result of that may be that there will be less new buy-to-lets coming on the market, so investors who are already in the game will do quite well.
There won’t be as many investors coming in this year, as there have been in previous years.
David Kendal also reported that the Scottish housing market is traditionally more stable than that in the south. Because does not experience a “boom and bust cycle”. Glasgow and Edinburgh lets have been relatively consistent during a somewhat rocky period elsewhere in the UK
House prices in Scotland rose by 2.4 per cent in last quarter of 2007 - according to the Bank of Scotland’s Scottish House Price Index. In the other hand prices fell 0.8 per cent in the rest of the UK.
Popularity: 11%
Capital Gains Tax (CGT ) Changes Will Test Investors
April 2, 2008
The international credit ratings agency, Fitch Ratings, has advised that forthcoming changes to CGT will put the buy to let market to the test. The tax changes are thought to be implemented from April 6th.
Fitch Ratings believes that the lower rate of CGT will test investors’ ability when it comes to keeping their existing properties, enticing many to sell in order to profit from past capital appreciation.
Stuart Jennings, group credit officer at Fitch said:
With expectation of further house price decline in the coming months, the capital growth incentive for buy-to-let investment has faded.
Data on recent buy-to-let investor behaviour shows an increasing number ‘marking time’. This may change when the new tax treatment effectively makes it cheaper to sell.
Popularity: 20%