6. • with effect from 1st April 2015
• progressive tax bands, nil band of £145,000
LBTT – residential property rates
Land and Buildings Transaction Tax
Purchase price LBTT rate
up to £145,000 0%
above £145,000 to £250,000 2%
above £250,000 to £325,000 5%
above £325,000 to £750,000 10%
over £750,000 12%
7. • Example:-
Buy-to-let purchase - £300,000
LBTT - £4,600
(0% for first £145,000; 2% for the next £105,000;
5% for the next £50,000).
Land and Buildings Transaction Tax (contd.)
8. • with effect from 1st April 2016
• applies to acquisition of additional dwellings of £40,000 or more
• additional flat rate of 3%
– unless replacing only or main residence
– claim repayment if sell existing main residence within 18 months
LBTT – Additional Dwelling Supplement
10. • CGT on disposals of residential property still at 18% or 28%
• subject to availability of usual reliefs such as Private Residence Relief and Lettings
Relief
• non-residents subject to CGT on disposal of UK residential property with effect from
6th April 2015
Capital Gains Tax
11. • with effect from 5th July 2016
• profits on certain property disposals subject to income tax rather than CGT?
• HMRC “… considers that generally property investors that buy properties to let out
to generate property income and some years later sell the properties will be subject
to capital gains tax on their disposals rather than being charged to income tax.”
Transactions in land – anti-avoidance rules
12. • currently up to 45% tax relief
• to be reduced to basic rate tax (currently 20%) from 2020/21 tax year
• phased in gradually from 2017/18 onwards:-
Restriction on deduction of mortgage interest from rental income
Tax Year % of costs deducted
from profits
% of costs deducted at
basic rate
2017/18 75% 25%
2018/19 50% 50%
2019/20 25% 75%
2020/21 0% 100%
13. • Property income allowance - £1,000 (from April 2017)
• replacement of the “Wear and Tear Allowance” (from April 2016)
• replacement of “Domestic Items Relief”
Other income tax deductions
14. • partnerships
– flexibility to share income
– tax implications?
– recent tax changes still apply
– tax transparent
Alternative ownership structures
15. • limited company
– profits and gains taxed at corporation tax rates – currently 19%
– finance costs still fully deductible against corporation tax
– further tax cost to extract profits?
Alternative ownership structures
16. • administration
• borrowings
• Capital Gains Tax – incorporation relief?
• Land and Buildings Transaction Tax and Additional Dwelling Supplement
multiple dwellings relief
ADS?
6 or more properties = non-residential rates and no ADS
Incorporation
17. 1. Five properties, each with a value of £180,000
LBTT and ADS £30,500
2. Six properties, each with a value of £180,000
LBTT (at non-resi rates and no ADS) £9,713
LBTT and ADS on incorporation
18. • maximise reliefs
• alternative structures
• compare against different asset classes
Summary
20. Breakout sessions now available to attend
National Landlord Day
An alternative vision of private rented
sector housing
Dispute resolution – supporting a claim
Understanding Universal Credit
Investing in training
Biosphere:
Ozone:
Showdome:
Salisbury suite:
21. An alternative vision of private
rented sector housing
Graham Simpson MSP
National Landlord Day 2018
with Stephen Jardine
National Landlord Day
22. Breakout sessions now available to attend
National Landlord Day
Short term letting – what’s all the fuss
about?
Top 10 things to look out for with landlord
Insurance
Could an empty home be your next
investment?
Quality (mid tenancy) data – are your
SSORTed?
Biosphere:
Ozone:
Showdome:
Salisbury suite:
23. Short term letting –
what’s all the fuss about?
National Landlord Day 2018
National Landlord Day
Fiona Campbell Adam McVey
ASSC City of Edinburgh
Council
24. National Landlord Day
Lunch is served in the Stratosphere area
Programme resumes 13:40 hrs
Please visit our exhibitors’ stands
Sponsors:
National Landlord Day
25. Breakout sessions now available to attend
National Landlord Day
Handling difficult situations
Reducing costs in implementing the letting
agent code?
Quality (mid tenancy) data – are your
SSORTed?
Understanding Universal Credit
Biosphere:
Ozone:
Showdome:
Salisbury suite:
51. Breakout sessions now available to attend
National Landlord Day
Enforcing tribunal decisions – the role of
the sheriff officer
Understand your EPC and improve its
rating
Investing in training
Could an empty home be your next
investment?
Biosphere:
Ozone:
Showdome:
Salisbury suite:
52. Enforcing tribunal decisions –
the role of the sheriff officer
Ronnie Murison
Stirling Park LLP
National Landlord Day 2018
National Landlord Day
53. Part of
Making a Difference
‘Enforcing tribunal decisions
– the role of the sheriff
officer’
Ronnie Murison –
Stirling Park LLP
13th November 2018
54. Part of
Making a Difference
Role of sheriff officer
• historic profession
• code of practice
• regulated
• messenger-at-arms
• our functions
• legislative evolution
55. Part of
Making a Difference
Taking possession back
• vacant properties
• charge for removing
• form 4 notice (date of removal)
• removing the tenant(s) and occupants etc.
• possessions left in property
57. Part of
Making a Difference
Recovering any arrears
• tracing former tenants
• commercial assessment
• charge for payment
pre-requisite to certain diligences
establishes apparent insolvency
58. Part of
Making a Difference
Earnings arrestment
• prescribed deductions from salary
• DAIP issued within 12 weeks
• exemptions
• penalties for non-compliance
59. Part of
Making a Difference
Prescribed deductions
Net earnings (monthly salary) Deductions
Not exceeding £494.01 Nil
Exceeding £494.01 but not exceeding
£1,785.61
£15 or 19% of earnings exceeding £494.01,
whichever is the greater
Exceeding £1785.61 but not exceeding
£2,684.51
£245.40 plus 23% of earnings exceeding
£1,785.61
Exceeding £2,684.51 £452.15 plus 50% of earnings exceeding
£2,684.51
Example 1. Net salary of £10k p/a = £64.47 per month
Example 2. Net salary of £15k p/a = £143.64 per month
Example 3. Net salary of £25k p/a = £313.88 per month
Example 4. Net salary of £30K p/a = £473.53 per month
60. Part of
Making a Difference
Arrestment
• freezing funds/goods held by 3rd party
• protected minimum balance (banks) of £494.01
• automatic release after 14 weeks
• duty of disclosure with penalties
61. Part of
Making a Difference
Attachment & auction
• moveable effects (outside dwelling)
• attaching cars (DVLA/HPI checks)
• exceptional attachment order (inside dwelling)
• auction
• cost consideration?
62. Part of
Making a Difference
Regulated costs
* First-TierTribunalOrders
Charge forPayment £81.16
Earnings Arrestment £60.56
Arrestment £81.16
Attachment (variable) >£100.60
Allexecutedfees are recoverable from the Respondent
64. Part of
Making a Difference
The modern sheriff officer
tablets & mobile printers
real-time reporting
investigative
treating customers fairly
ISO 27001 & 9002
66. Part of
Making a Difference
Additional information
Additional information available on request - please contact Scottish
Association of Landlords if you would like an electronic version of the
following leaflets:
• Enforcing a payment order from FTT for private landlords
• Stirling Park information sheet
• Stirling Park contact sheet
67. Part of
Making a Difference
Questions
Ronald J Murison,
Director of Sheriff Officer Services
Stirling Park LLP, 24 Blythswood Square, Glasgow G2 4BG
DX 512051 Glasgow Central
r.murison@stirlingpark.co.uk
0141 565 5765/07771 845539
Enquiries to: 0141 565 5765 or officers@stirlingpark.co.uk
Tracing: trace@stirlingpark.co.uk
68. National Landlord Day
Refreshments are served in the
Stratosphere area
Programme resumes 15:30 hrs
Please visit our exhibitors’ stands
Sponsors:
National Landlord Day
70. What’s new in property
finance?
Duncan MacInnes, Ruffer
National Landlord Day 2018
Hugh Meechan, The Mortgage Lender
David Morrison, EQ Accountants
National Landlord Day
74. First-tier Tribunal
Housing and Property Chamber
• Housing (Scotland) Act 2014;
• sheriff court jurisdiction transferred to
FTT-HPC on 1 December 2017;
• “Actions arising from tenancies and
occupancy agreements” under existing
legislation;
e.g. regulated and assured tenancies.
75. FTT-HPC jurisdiction
• FTT-HPC has sole jurisdiction in all civil proceedings
arising from a private residential tenancy (PRT) under
Private Housing (Tenancies) (Scotland) Act 2016;
• PRT introduced 1 December 2017;
• jurisdiction includes payment actions in all tenancy
regimes.
76. Making an application to
FTT-HPC
• application form to be prepared;
• lodge with FTT-HPC office;
• separate application for eviction and arrears;
• include required attachments;
• no fee payable.
77. Application process
• application received by tribunal;
• checked by staff;
• passed to President / tribunal member;
• sifting process;
• either dismissed, further information sought or referred to
tribunal.
78. Applications dismissed at “sifting”
• frivolous or vexatious;
• dispute has been resolved;
• “not appropriate” to accept application;
• application is for a purpose other than that specified in
application;
• identical to previous application.
79. “Frivolous” applications
• ALL applications are now checked by a legal member
before proceeding to tribunal;
• much more stringent than sheriff court;
• application will be dismissed at sift if they are “futile,
misconceived, hopeless or academic”;
• application has no prospects of succeeding.
80. Scott v Bachhaznadji
• application for eviction lodged 5 February
2018;
• CMD (case management discussion) set for 16
April;
• sheriff officers could not find the tenants to
intimate CMD date;
• Chamber President made the decisions;
• where tenants' address is not known
application should be rejected at sift;
• no provision in FTT rules for service by
“advertisement” or on “walls of court”.
81. Armstrong v Clark
• arrears payment case lodged 8 February 2018;
• tenant's address in application was his work address;
• tribunal asked landlord to obtain home address for
former tenant;
• requests for correct address sent to landlord;
• landlord told tribunal to phone tenant at work and ask;
• sifting member dismissed the application on 6 June
2018;
• “not a function of the FTT to establish the address of
a tenant”.
82. KJB Housing v Rae
• application lodged 3 January 2018;
• seeking eviction from a PRT;
• notice to leave dated 17 December 2017;
• notice specified 18 January as the
effective date;
• at sift, notice deemed invalid and
ineffectual as failed to specify correct
date;
• application thus “frivolous” and rejected.
83. Badahur v Sachmerda
• application lodged in name of estate
agents;
• tenancy agreement listed the agent as the
landlord;
• land register check showed property
owned by Mr Badahur;
• no explanation why tenancy/application
not in his name;
• rejected at sift by legal member.
84. McConville v Mohammed
• eviction application in short assured tenancy;
• NTQ/section 33 notice handed to tenants in agent's office;
• not proper service;
• NTQ can only be served by recorded delivery or sheriff
officers;
• application rejected.
85. Process after “acceptance”
• notice given to all parties that application accepted;
• written representations requested from other party;
• tribunal may issue “directions”;
• fix case management discussion or hearing.
86. Case management discussion
• heard by legal member alone;
• identify issues to be resolved;
• identify agreed facts;
• discuss what witnesses / documents
required;
• discuss whether “evidential” hearing is
required;
• can make “final” decision at CMD.
87. Hearing
• held in public;
• held on weekdays during normal business
hours;
• tribunal will consist of legal member
(chair) and at least one “ordinary”
member;
• can proceed in absence of party;
• at least 14 days’ notice given to parties by
FTT.
88. “Overriding objective”
• FTT-HPC must give effect to “overriding objective”;
• “deal with the proceedings justly”;
• must manage proceedings in accordance with this
objective;
• parties must assist tribunal.
89. “Deal with the proceedings justly”
• proportionate to the complexity of the issues and the resources of
the parties;
• seeking informality and flexibility in proceedings;
• ensuring parties are on equal footing procedurally;
• using the special expertise of the First-tier Tribunal effectively;
• avoiding delay, so far as compatible with the proper consideration
of the issues.
90. Evidence at hearings
• documents to be lodged 7 days in advance;
• can lodge late with permission of FTT;
• witnesses should be listed in advance.
91. Decisions at hearings
• majority vote but chair has casting vote;
• decisions must be in writing;
• statement of reasons to be given if requested in eviction
cases;
• if decision not unanimous, chair must also give a note on
minority view.
92. Decisions at hearings
• all published on the FTT website;
• many decisions in favour of landlords;
• payment orders made;
• eviction orders granted;
• still the occasional problem though!!!
93. Hall v Beattie
• hearing 11 September 2018;
• eviction action;
• all in order except section 11 notice;
• named person was not tenant;
• tribunal held notice was mandatory;
• allowed adjournment for re-service in correct form.
94. Lewis v McKenzie
• eviction action
• application lodged 16 March 2018
• CMD 11 May 2018
• tribunal questioned validity of NTQ and AT6;
• adjourned to 18 July 2018;
• decided both were invalid;
• application refused.
95. Patience v Owens
• eviction action;
• CMD 6 June 2018;
• short assured tenancy;
• NTQ served by sheriff officers;
• no section 33 notice;
• landlord unaware it was needed;
• application dismissed.
96. Royal College of Surgeons v Murray
• eviction application;
• based solely on AT6 procedure;
• ground 8 eviction;
• CMD 22 June 2018;
• no specification of grounds in part 3 of AT6;
• FTT held AT6 invalid and dismissed application.
97. Scotcrafts Leasing v Kajaks
• eviction case;
• CMD 23 August 2018;
• NTQ and section 33 hand delivered on 28 December 2017;
• tenant accepted he had received them;
• FTT held service invalid and application dismissed.
98. Tenancy deposit cases
• The Tenancy Deposit Schemes (Scotland)
Regulations 2011;
• must lodge deposit with an approved scheme within
30 days of start of tenancy;
• must provide information to the tenant re deposit
amount, date paid, details of scheme and
circumstances in which deposit can be retained;
• currently 3 approved schemes in Scotland.
99. Tenancy deposit cases
• over 90 published decisions on HPC website;
• if regs breached, award “must” be made;
• almost all make awards against landlords;
• most seem to be 1 or 2 times the deposit;
• very few have the full possible sanction!
100. Gordon v Ghafoor
• tenancy started 28 February;
• deposit of £650 paid;
• tenant moved in and moved immediately out;
• keys returned 5 March;
• deposit not paid into scheme;
• landlord argued no need as tenancy had ended within 30
day period.
101. Cook v Gilliard
• successive tenancies from 2014-2017;
• deposit £500 paid to letting agent;
• lease said lodged with SafeDeposits Scotland;
• actually lodged with LPS;
• no information given to tenant;
• deposit returned at end to landlord.
102. Scheltdorf v Singh
• deposit of £550 paid;
• not lodged with any of the schemes;
• landlord defence was “cash was put in a safe deposit box
with RBS”.
103. Appeals
• appeal to Upper Tribunal;
• on point of law only;
• requires leave of the FTT;
• must seek leave within 30 days of
receiving decision;
• if leave refused, applicant can ask for
leave from Upper Tribunal;
• also a “review” process.