Tax Avoidance and Tax Planning

I wonder whether we’ll hear the usual squeals over this:

Gordon Brown gave his £700,000 flat in central London to his wife Sarah
weeks before he moved into 10 Downing Street, The Daily Telegraph can
disclose.

The Prime Minister’s wife then cashed in on recent
soaring property prices by taking out a special type of mortgage
against the value of the flat with a private bank.


Downing Street sources said that there were no tax implications from
the transaction and insisted that Mrs Brown had borrowed against the
flat to give her more financial independence.

There are possible tax implications in two ways: if it’s rented out then tax on that will be lower and if it is sold there will be no CGT.

But that’s fine: it is everyone’s right to organise their affairs as they see fit, most especially if it reduces their tax bill. But it is everyone’s.

Yes, private equity bastards as well as Prime Ministers.

In

6 responses

  1. Mark Wadsworth Avatar
    Mark Wadsworth

    “Mrs Brown had borrowed against the flat to give her more financial independence”
    Wot?
    Obviously the ugly fat bitch has been taking economics lessons from her pathetic shit of a husband.

  2. james C Avatar
    james C

    Gosh, Mark Wadsworth is a clever chap.

  3. Mark Wadsworth Avatar
    Mark Wadsworth

    James C, can you explain how being massively in hock to the bank while being unemployed equates to “financial independence”?

  4. If Gordon GAVE her the flat, does that not come under the Gift Tax rules, if she then takes out a mortgage to rent agreement, any rents are classed as income surely, and therefore subject to income tax.?
    I don’t know what the thresholds are, so am asking the question.
    Tim adds: Gifts between spouses do not attract gift tax.
    Further, if she takes out a mortgage to rent agreement, then the interest she pays is an expense to offset against the rent. Be most unlikely that she would pay any income tax (also, she has a personal allowance).
    Yes, it would reduce their tax bill (on the assumption that they did rent it).

  5. Monty Avatar
    Monty

    Under recent legislation, any UK dwelling left unoccupied for a period of 6 months or more, can be requisitioned by the local authority with jurisdiction. This measure was introduced to increase the housing stock available to councils.
    So I do hope they end up with the tenants from hell, or maybe a few dozen illegal immigrants sleeping in shifts on every square inch of floor space.
    A property can lose value pretty fast….

  6. james C Avatar
    james C

    ‘James C, can you explain how being massively in hock to the bank while being unemployed equates to “financial independence”?’
    Maybe she needs another £700k present from her husband.

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