Should I Purchase Property Using a Limited Company?

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[@CallumEdwardUK]

As a chartered accountant & tax advisor - enjoyable video 👍

[@JustinWilkins]

That is the greatest honour we can receive! Thanks for watching

[@meehirhirani8723]

​@@JustinWilkins love the content. You said there was some material to download to help with deciding between a company and personal. Where can I find that?

[@elizabethshelby5613]

This has been an excellent video on structuring a Ltd from the tax benefits prospective.

[@JustinWilkins]

Glad to hear it! I think we covered some topics that aren't usually discussed on youtube :)

[@BlnKResume]

Valuable, valuable information!! This deserves way more views. Thanks Justin!

[@marccafe9543]

Literally the exact topic I’ve had on my mind for the last few months. This was really helpful, I like that you prioritise your questions from the viewers perspective. No waffle just golden nuggets of information.

[@JustinWilkins]

Really pleased to hear that, and good timing :) Thanks for watching

[@djdarrenc01]

Really insightful. Excellent!

[@harrisonbrown9669]

Another really informative video! Thanks Justin, I work for Leaders Romans Group, Get Ground are apart of the umbrella company so it’s great to see a company I work for on your Chanel, I’ll definitely use this at work

[@JustinWilkins]

Awesome to hear! thanks for watching

[@lindsaywaistell208]

Just what I needed to hear

[@JustinWilkins]

🙌🙌

[@lifelessons4262]

This is a sublime video!!! Clear and helpful. Thank you both! So now I’m wondering what the main differences are between (1) either having one holding company comprising individual SPVs, compared to (2) individual SPVs. Anyone know?

[@RiseAboveItAllnow100]

Very valuable information ! Cheers

[@JustinWilkins]

Glad it was useful 🙌

[@TomRyanElliott]

A great video. I unfortunately purchased my first property under my own name and it's near its end of repair completion. It's a big decision whether to transfer it to a business considering the costs before I finally have a tenant in

[@scottstewart_estateagent]

Good video mate 👍

[@JustinWilkins]

Thanks 👍 glad you liked it!

[@user-it8fy8ov3v]

Interesting video!

[@JustinWilkins]

Thanks! :)

[@adminteam7216]

Great video and very informative. I have 5 BTL properties that I bought in my personal name, now considering transferring them into a Ltd company. Would like to discuss my situation along with the accountancy services and advice that you provide. Thank you

[@S1849]

What an excellent video... But what about the inheritance tax part? Can I add my daughters as directors of my Ltd company (when they're old enough), and then pass everything on to them when I die, without paying any IHT!?

[@i-hsiuchiang8569]

The short answer: Yes. The long answer: Yeeeeeeeeeeeeeeeeees. Limited company gives you the power of 'entity' rather than the natural person. Meaning you can avoid tax and dissolve it whenever you wish. It's the gray area where everyone abuses it unfortunately...

[@Wonderful_World007]

Your new subscriber ❤

[@JustinWilkins]

Welcome 👋

[@shanksy9219]

Maybe on of the best videos I’ve seen about purchasing via a LTD

[@JustinWilkins]

Great to hear it! I’ve always found it’s not talked about in detail online - so glad it was useful.

[@fivestars9285]

Another aspect to highlight: age limit is applicable to personal mortgages - mortgage debt has to be repaid by age 70 or 75. Age doesn't apply LTD company mortgage

[@JustinWilkins]

Thanks for sharing!

[@ianrose6475]

I have a LTD company already. On buying one property, my solicitor sent me a draft "Minutes and Resolution of Meeting of the Directors" that hadthe following statement in it. "It was agreed that there are to be no repayments in connection with the Directors loan and that the Directors will have no beneficial interest in the property." I guess this means I cant't take back out the money I loaned. In hindsight, I don't know why he thought that necessary. Any thoughts?

[@stargategoku]

HI Justin, Thanks a lot for posting! btw, not sure if you have video how to refinance property or buy property using limited company. what are the requirements to buy property under SPV. It would be grateful if you make a video or you have already.

[@liamrogan5289]

It's very easy to set up and manage a limited company for purchase. If you head over to the website using the link above you'll be able to understand more about this. Refinancing in a limited company is super simple too

[@stargategoku]

@@liamrogan5289 thank you very much! Justin mentioned about Get Ground. I will use their service in the future.

[@JustinWilkins]

Great video suggestion thank you, and glad to hear you will be looking to get a ltd company setup for your property purchases in the future!

[@stargategoku]

@@JustinWilkins yes, you have great video. I have properties on our personal name which is not good due to section 24 and stop expanding property entrepreneur but focusing on reducing our mortgage interest but when I watched your youtube, i was challenged again. Thanks.

[@reecehopkins9021]

Don't you have to sign a "Deed of Guarantee" when buying through a Ltd company which negates any liability limitation? We had to anyway with Mortgage Works.

[@JustinWilkins]

Yes you are correct, often have to sign these with Ltd Co mortgage lenders now. Almost every purchase requires ILA (independent legal advice).

[@liamrogan5289]

If not using a mortgage/or have it paid off then the personal guarantee element would not apply but you are correct that the liability shield is penetrated if the mortgage lender requires you to provide a personal guarantee. That said, you are no worse off than you would be purchasing personally. Personal guarantees are something that banks use as a "stick" to ensure that you feel obligated to keep up with payments etc.... but are in practice extremely hard to enforce and very costly. In reality lenders try to work with borrowers to find the best way to pay back any debts rather than seizing their assets such as their home or car etc..., that is very much a last ditch effort to recoup costs. If you own in company name and default or don't keep up with payments, the lender will typically try and recoup from the company's other assets e.g., other properties or cash.

[@bgate1984]

Is another disadvantage- if the property goes up in value say £20k, you want to remortgage and take out £15k of that to spend on whatever but not property- in personal name you pocket the cash no tax as it’s borrowed? In a company you would pay tax on that money if you remove from company ? Let me know, cheers

[@yoyo895]

Depends how you remove it. Directors loan account is going to be pretty big if you've been loaning deposits to the company for purchase. This being a good way to extract without incurruing any tax liability, effectively paying yourself back.

[@shanksy9219]

If purchasing via a LTD and the mortgage rate is say 700 and the rent is 800 do you just pay tax on that 100? Or if it was a flat 700 no tax?

[@liamrogan5289]

That's correct, assuming you are referring to an interest only mortgage. You can deduct the full £700 in interest from your rental income and only pay Corporation tax on what is left over.

[@JustinWilkins]

Correct, I second Liams comment below

[@shanksy9219]

@@liamrogan5289 Brilliant thank you Liam. I was looking to get a property and the first few months were planning on renting it to my partner on the books or the value of the mortgage and just wanted to make sure would be no tax on that till profit is being made. Thanks alot.

[@Over50andMe]

Where do I get in touch with this accountant

[@JustinWilkins]

Link in the description 🙂

[@Pete_Sam]

When buying a house via your Ltd company, do you pay normal stamp duty rates as an individual would?

[@liammorris21]

Yes

[@Pete_Sam]

Thanks 👍🏻

[@DeanW-1990]

The only investment my man needs to make is ditching them skinny jeans and investing in some tax free looser jeans 🤦‍♂️

[@JustinWilkins]

😂👏 those skinny jeans keep my money tightly in my pocket, away from being spent