- Patrick Maflin
Making more money… We all want to do it, but the big question is How?
We’ve all heard the saying “You’ve got to spend money to make money”, well at the moment that couldn’t be more true.
Seafarers are in one of the most enviable tax positions of any industry, namely due to the complete tax exemption on foreign income earned under Seafarers Earning Deductions.
This allows an incredible opportunity to save money…
However, interest rates in the UK are at all-time historic lows, which means there has never been a WORSE time to save pounds – but conversely never a BETTER time to invest wisely.
All this makes investments such as buy-to-let property an attractive option.
With interest rates tracking below GBP inflation, pounds sitting in your savings account could actually be losing real world value.
This points to two reasons to invest;
1.You are not making money on savings
2.You can borrow money cheaply
But entering the property market as first time buyers can be daunting.
Unfortunately, due to their unique status, Seafarers are misunderstood buy many mortgage lenders. This is why Marine Accounts partners with specialist mortgage advisory firms that work with lenders who understand seafarers and have an appetite for lending to them.
The 2015 budget changed the buy-to-let landscape, however it remains a solid investment option for seafarers.
UK landlords are subject to a gradual change in the way finance costs can be offset against rental income; while this also affects a seafarer landlord, they will be able to earn up to £45,000 in rental income before seeing a significant impact on their tax bill.
The change was implemented in 2015 and will reach full effect in 2020. When in full swing, no finance costs will be deductible against rental income. Instead a basic rate reduction of 20% will be applied to their finance costs, to lower their income tax bill.
Follow the link below to apply for a consultation;
Any tax advice in this publication is not intended or written by Marine Accounts to be used by a client or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party matters herein.