Buy property through a limited company | Buy to Let property investment

We have seen this massive shift from most investors owning property in their own names, to buying and managing property through a limited company. There is a clear reason for this.
Section 24 changed taxation in such a way that we can no longer offset the interest costs against the income when owning property in our own names. We can continue to do so in limited companies.
But there are also disadvantages to owning, renting and managing property through limited companies too.
If you run multiple property related activities in your property on your property investment business, such as Buy to Let, property development, flipping property, managing property, then you might want to use a group structure.
Check out my previous videos on Buy to Let property investment:
• Buy to Let mortgages i...
Timestamps
00:00 - Intro
01:03 - How section 24 changed the way that property investors are taxed
02:40 - The main advantages of owning property through a limited company
03:30 - The main disadvantages of owning property through a limited company
05:49 - Why investors use group structures for the different aspects of their property investing business
08:28 - Consider getting specialist advice before opting for a limited company for your property business
#LimitedCompanyProperty #BuytoLetPropertyInvestment #PropertyBusinessUK
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Thank you for watching my name is Saj Hussain AKA The Property Joint Venture Expert and Your Partner for Wealth Creation Through Property.

[@propertywithjacob6919]

Agreed, using a business to shield yourself from financial mishaps and to create a professional viewpoint for your customers. Not to mention the potential for tax benefits.

[@TheSajHussain]

Well said Jacob.

[@mogheesmir]

Another great video, thanks Saj!

[@TheSajHussain]

If you are enjoying these videos, then please do share them with your friends.

[@mruddin2634]

I have never, commented on a KZbin vid. EVER! but this video has answered soo many of my questions. THANK YOU, AMAZING CONTENT & PERFECT PRESENTATION!!! Please tell me how I can get in contact with you as I am planning on getting my foot on the ladder.

[@TheSajHussain]

Hi Mr Uddin, Thank you so much for you comments. If you are enjoying these videos, then please do share them with your friends. Best way to connect with me is on my website www.Sajhussain.com

[@MrMoneyLong]

Thanks Saj. Liked and subscribed - as i’m looking to do my next BTL via an SPV.

[@TheSajHussain]

Thank you and welcome to the channel.

[@mamuidkhan5243]

one of the best videos..well done ..excellent

[@TheSajHussain]

Glad you enjoyed it

[@SPSNW2023]

Saj , great vlog. Hoping to start soon, thanks for your help 🙏

[@aminislam4689]

Another brilliant video. Please keep up your amazing work.

[@TheSajHussain]

Thank you very much!

[@user-cg9hk7et9i]

inbox my admin For more information and guardians on how to invest and trade👍

[@user-cg9hk7et9i]

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[@vivrobinson6950]

Great video Saj thank you.

[@TheSajHussain]

Glad you liked it Viv

[@kilkure]

Thankyou for this, it has been very informative.

[@TheSajHussain]

You're very welcome!

[@Ali-cx3mm]

Love your vids, very detailed 👍

[@TheSajHussain]

Glad you like them!

[@bouwah85]

Thank you. Helped me to make sense of it now.

[@TheSajHussain]

You're welcome!

[@user-cg9hk7et9i]

Thanks inbox my admin For more information and guardians on how to invest and trade👍

[@user-cg9hk7et9i]

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[@user-cg9hk7et9i]

Tell him I referred you to him

[@mamuidkhan5243]

Would it be possible to make a video on LLP structure & how to transfer properties over to the LLP LTD company? I enjoyed your excellent informative videos. Many thanks

[@TheSajHussain]

Great suggestion!

[@JatinderBhogalJat]

Awesome video as always Saj, answered many of my questions concisely. I'd be very grateful for the name of a property tax accountant / financial advisor who can help me with advice + planning/company set-up for starting off in the world of Buy/Refurb/Refinance and Rent to Rent Serviced accommodation.

[@TheSajHussain]

To access my contacts, use this link www.sajhussain.com/access-sajs-contacts/ We will then look at your needs and connect you with the person we think can best help you with your situation.

[@Steve-nz6ek]

Another great vid Saj

[@TheSajHussain]

Glad you enjoyed it.

[@cab1n]

Great video

[@DianeOfori]

Thank you for this!

[@TheSajHussain]

My pleasure!

[@gordonadam7051]

Great honest content. Thanks

[@TheSajHussain]

If you are enjoying these videos, then please do share them with your friends.

[@Wellnesswithaleksandra]

Very useful ! Thank you

[@moecomments]

Hi Saj , thank you for this great video. You mentioned you can take dividends from the limited company, but can you also take a salary as the director and employ say a admin assistant on PAYE and offset this against your tax bill?

[@TheSajHussain]

Yes you can!

[@ZSidat]

I find ur videos very informative , thank u

[@TheSajHussain]

Glad you like them!

[@user-cg9hk7et9i]

inbox my admin For more information and guardians on how to invest and trade👍

[@user-cg9hk7et9i]

W=h=a=t=s=A=pp +1=5=8=6=9=6=0=5=3=9=5

[@user-cg9hk7et9i]

Tell him I referred you to him

[@KGAli-sr7su]

Grate video saj very informative I'm sure a lot of people are going down the ltd company route could do with this advice. Can I ask what the LLP structure is in avoiding stamp duty when moving property over to your LTD company ?

[@TheSajHussain]

It's best to explore this with a property tax expert. If you message me on Facebook or Instagram, I can connect you.

[@resh242]

Very informative vidio thanks Saj .

[@TheSajHussain]

You are most welcome.

[@georgewainwright1651]

Great channel! 👌

[@TheSajHussain]

Thank you George, don't forgot to subscribe with the bell notification on!

[@TheWayshower1982Growrich]

Hi Saj. I am looking to set up an ltd. Company to run my property business, can you please help me in connecting with the right person ( a property accountant), so that I could set it all up without making any mistakes? Thank you for all the hard work you are doing. Much appreciated.

[@TheSajHussain]

To access my contacts, use this link www.sajhussain.com/access-sajs-contacts/

[@soharthomas]

Can you please tell me what is exchange on notice and long stop date... Is it same as exchange of contract.

[@TheSajHussain]

Yes, just the completion date is delayed.

[@misssugar2339]

Great video Saj, I would just like to know, when setting up a company name to invest in property should the company be limited by shares or limited by guarantee or does it not matter very much?

[@SatyanarayanaMaddi]

Is it sensible to release equity from a residential repayment mortgage and buy two more properties when your residential mortgage costs £300 more.

[@TheSajHussain]

This is a personal decision. I would look at at from a Return on Capital perspective, can it earn you more then it is costing.

[@squirrel6338]

What are the merits of one ltd company for multiple properties vs. a separate ltd company for each property?

[@TheSajHussain]

There are many reasons why someone would do that. However, generally speaking one company is adequate otherwise you will have higher accounting and administrate costs.

[@Kicksandclicks_]

Hi Saj I have opened a LTD company using SPV code but a mortgage advisor and tax accountant advised it might be beneficial to do it as a sole trader because of tax efficiency. What do you think?? Can you also do a video about investing in cottages please.

[@iftihussain8788]

Hi- looking to reach out to connect to a good property accountant. Is this something you are able to help on?

[@Youssef-om4yg]

definitely👍👍👍

[@TheSajHussain]

Thanks for the support Yousef, if you are enjoying these videos, then please do share them with your friends.

[@bakieliacik5949]

Thanks Saj

[@TheSajHussain]

Thank you Baki!

[@dielaughing2520]

Hi, i enjoyed watching your video. Could you please recommend good accountants to advise me how to best transfer property from my personal name to a company. Thanks

[@TheSajHussain]

To access my contacts, use this link www.sajhussain.com/access-sajs-contacts/ We will then look at your needs and connect you with the person we think can best help you with your situation.

[@MDORLE]

Can a new Ltd buy a BTL or it has to be a established ltd company?

[@TheSajHussain]

New company should be able to get BTL mortgages.

[@umarkhan1027]

Hello good Afternoon, I have bought the property through limited company (buy to let). Circumstance change . Now I want to live that property. How I can change to my personal name. Please advise.....

[@TheSajHussain]

If you have a lender/mortgage you would need to get their consent. If no mortgage then just check tax situation with your accountant before you use it as your home.

[@christianbanks7458]

Liked and subscribed 🙏

[@TheSajHussain]

Much appreciated Christian

[@ravisunkari7348]

I dont know why you did not cover about ATED tax in uk

[@TheSajHussain]

I’ve made a new tax video on Saj daily playlist

[@vattwal4176]

Hi saj a great video yet again. Do you think it's best doing flips in a company or own name?

[@TheSajHussain]

This really depends on your personal tax situation.

[@Kyle-rf5mb]

Can I use a property that's paid off, to mortgage against to buy in a limited company?

[@TheSajHussain]

Yes, it will be a loan from you into the limited company.

[@prash0000000000000]

Hi Saj, I was thinking of restructuring my company into an alphabet shares options where the director's shares are frozen. Would you know have any suggestions?

[@TheSajHussain]

Hi Prashant, I'd highly recommend speaking to a property accountant that can advise you correctly. It would not be appropriate for me to give you an out of context answer here without taking a holistic view of your situation.

[@stevenlahori2665]

Hi Saj... I'm from Birmingham.. Great information.... could you recommend any good 👍 Property accountants.. thank you 😊

[@TheSajHussain]

Thanks for the support Steven. You can contact me directly on Facebook and I can help you from there.

[@resh242]

Hi Saj, can you suggest a good account in Birmingham please.

[@TheSajHussain]

Yes I can Resh. To access my contacts, use this link www.sajhussain.com/access-sajs-contacts/

[@stargazer5k]

can you recommend a good property accountant near wolverhampton please

[@TheSajHussain]

To access my contacts, use this link www.sajhussain.com/access-sajs-contacts/

[@mrsingh5817]

Excellent info👌🏻

[@TheSajHussain]

Glad you liked it

[@user-cg9hk7et9i]

Thanks inbox my admin For more information and guardians on how to invest and trade👍

[@user-cg9hk7et9i]

W=h=a=t=s=A=pp +1=5=8=6=9=6=0=5=3=9=5

[@user-cg9hk7et9i]

Tell him I referred you to him

[@jimmykahn454]

Saj can you recommend a good property tax accountant, based in Birmingham’?

[@TheSajHussain]

Send me a message on Facebook or Instagram and I will connect with you.

[@christopherhubbard602]

I'm not going as a business I'm just a small buy to let Porson

[@TheSajHussain]

It really only becomes a problem if you start growing the portfolio.

[@skhrng5218]

I have already bought properties on solo trader Do you think I should transfer those properties into LTD or leave it as solo trader? Thanks

[@n.s.5278]

You'll need to pay stamp duty again if you transfer, so leave it. The video wasn't very clear about who should not be going ltd co route: namely those who are basic rate tax payers, they would pay more in a ltd co structure (and have extra expenses). Also if you have a spouse that is on low or no income, you can transfer to her/him without paying stamp duty and share the tax burden. So it is only once both of you get over the basic rate tax band that a ltd co makes sense. And if you are only slightly over, you can mitigate with SIPPs etc., so ltd co is not step one.

[@TheSajHussain]

Good points on this. This is just a general overview.

[@TheSajHussain]

I strongly recommend speaking to an accountant that can give you more specific and personalised advice. If you would like me to introduce you to a property accountant send me a message on Facebook or Instagram.

[@skhrng5218]

Thanks so much for the good advice.

[@knownsensesocialmedia7618]

I don’t know why we have to watch KZbin videos first and than message to SAJ on face book to get accountant details? Why can’t you just mention here it’s inconvenient asking the same question twice. You may want to grow your face book audience too but it’s good idea to share on the same chancel as you present the videos.

[@ianh9871]

Total value of Uk in 2018 was £14.6trn (inc residential property then valued at £6.6trn) . 20% of Uk housing is privately rented, alot of those portfolios now incorporated. For the budget, the two biggest asset classes are businesses and property. Those will be the targets, although I dont foresee HMRC going big on taxes this year My question - In 2016, S24 came out of nowhere and left people scrabbling around making decisions about incorporating. I remember Paragon mortgages saying at one point saying 67% of applications where for LTD. Will HMRC look at all incorporated RESI portfolios that have enjoyed a few years tax saving, and are now neatly packaged up in LTD's - easy for them to change the corporation tax rate through the 68209 SIC code. Before anyone says no/never, this is exactly what they did do with non LTD portfolios from 2016. I know many people who have spent tens of thousands incorporating to mitigate S24, and just cant see HMRC letting this go - what do you think www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2016tomarch2018 www.siccode.co.uk/sic2007/code-68209

[@TheSajHussain]

This is a good point and I agree it could happen.

[@user-nq7wc6ij6m]

To my mind, having properties in the limited company isn't regarded as risky, because such firms may be related with the tax effectiveness.

[@TheSajHussain]

Tax efficiency is why many are going this way

[@knownsensesocialmedia7618]

Hi,can you please connect me with property accountant in Manchester area. Thanks

[@TheSajHussain]

Send me a message on Facebook or Instagram if you would like me to connect you to a property accountant, wont necessarily be Manchester based.

[@umairahmad4711]

Great video

[@TheSajHussain]

Thank you, glad you are enjoying them.