UK Holding Company Tax Benefits

[@UK-Property-Tax-Accountants]

Tell us more about your situation here in the comments box below. Feel free to read our article www.optimiseaccountants.co.uk/knwbase/using-holding-companies-as-a-property-investor-and-property-developer/. Why not join us at one of our live events? Register here: www.optimiseaccountants.co.uk/monthly-seminars/.

[@FirestarGraphics]

Great video Simon. We had our first call with Jan today from optimise and can’t wait to start working with you guys.

[@UK-Property-Tax-Accountants]

It will be a real pleasure to serve you. Welcome to the Optimise family

[@jamesbelluk2721]

Another great video Simon! I will be purchasing the spreadsheet once I get my company on track! What benefit would there be by moving the flipped house from flipped limited to the holding company? I understand that if you were a sole trader and moved the flipped house to a limited company you’ll would pay SDLT and capital gains tax, but why wouldn’t you just leave the flipped house in flipped limited and rent it out from there?

[@UK-Property-Tax-Accountants]

It is a way to minimise the number of companies and to take advantage of SDLT/VAT concessions in certain circumstances

[@mhoward181]

Cud we urgently have a new video on the new CGT changes that are being considered. If they are implemented what could this mean. Cud we have another comparison between property in own name and LTD company. Once again I am in a situation where I don’t know weather to start a LTD company for further BTL. I may want to sell property in next 20 years. Another situation is if I die will my next of kin be worse off if i keep BTL just in my own name. Tricky.

[@UK-Property-Tax-Accountants]

On it’s way on Monday

[@nag9439]

Hi Simon, The holding company has to be the LLP? If we have quite a big portfolio of properties as buy-to-lets, SA and commercial.

[@UK-Property-Tax-Accountants]

You can use a LLP or LTD as a holding company

[@pinnball9964]

Hi, Simon, can I use a flip company to claim all the VATs I paid on materials when doing the renovation and then move the property to holding company?

[@UK-Property-Tax-Accountants]

You can in certain projects but it is a case by case basis. No generic answers on this one sadly

[@AlexG-zi6jr]

Thanks for your video. Would like to ask some questions. I would like to form a Wyoming corporation for anonymity purpose. I also would like to build credit for both and use tax strategies with S Corp and pay myself a salary. Should I form an LLC in Wyoming and file a foreign S corp in California? Does it have to have exact business name? Should I buy property, car and other assets with Wyoming or California company for asset protection? Should I pay myself from which Wyoming or California company?

[@UK-Property-Tax-Accountants]

We are UK tax specialists so be worth speaking with a CPA. www.greenbacktaxservices.com/

[@kimberleymee5756]

Great video Simon. Thanks for sharing. If someone already has a profitable trading company worth quite a bit, but wanted to set up a holding company (purchase shares of trading co) to invest in property, what are the tax implications if it has the same eventual beneficial and controlling parties? Does this crystallise a gain, is the stamp 0.5% of PP (or market value) and VAT implications if the business is VAT registered. I know a few people in this situation where I think holding companies retrospectively could be advantageous so helpful to know if retrospective can work! I’ll point them toward this video as a starter for ten!

[@UK-Property-Tax-Accountants]

You can create a holding company. you would then do a share for share exchange between your existing company and you’re holding company. This is a great way to prevent any capital gains tax and any stamp duty taxes

[@kimberleymee5756]

Great news Simon, I will let people know!!!

[@UK-Property-Tax-Accountants]

You are welcome

[@samna789]

Hi Simon, thank you for this insightful video. What if Flipped limited transfered all it's dividends to an LLP (instead of Holiding Ltd), what are the tax implications to the LLP when the partners decide to extract the monies? Is it just taxed as non savings income in the usual way @ 20/40/45%?

[@UK-Property-Tax-Accountants]

Please see my video response

[@samna789]

@@UK-Property-Tax-Accountants sorry I'm being silly here, where can I find the video response. Would really appreciate it. Thank you in advance.

[@UK-Property-Tax-Accountants]

Sorry KZbin was meant to link it. It is here; Paying dividends to a LLP: what are the tax implications kzbin.info/www/bejne/mX-tnad3mZyJg5o

[@samna789]

@@UK-Property-Tax-Accountants Thank you so much Simon, appreciate it so much. 😊

[@UK-Property-Tax-Accountants]

Always welcome 🙏

[@dheshpadiachey2041]

Amazing video, thank you so much!

[@UK-Property-Tax-Accountants]

You are very welcome 🙏

[@sajhussain26]

Can you set up a holding company for a SPV property investment company?? I doubt it because SPV is not a trading company but thought I would ask anyway :)

[@UK-Property-Tax-Accountants]

Hi Saj, Holding companies can be used for both trade and investments

[@nag9439]

Thank you Simon.

[@UK-Property-Tax-Accountants]

You are very welcome Nag

[@oliverpmellor]

Hi Simon, is the Tax Know How online community still working? The link doesn't take me to anyway. Thanks

[@UK-Property-Tax-Accountants]

Hi Oliver, we decided to discontinue that service due to the lack of demand

[@oliverpmellor]

@@UK-Property-Tax-Accountants That's a shame. It seemed like a great entry point. Is there a way you could provide the templates etc for a one off fee like the excel file? Many thanks.

[@UK-Property-Tax-Accountants]

Yes of course please see here www.optimiseaccountants.co.uk/tax-calculators/

[@oliverpmellor]

@@UK-Property-Tax-Accountants Excellent thank you

[@mihailchonev590]

Hi Simon, is holding company can own 100% of shares from trading company?

[@UK-Property-Tax-Accountants]

Yes it is 100% but can also be Lower as required