Stop Buying Property in a Limited Company! Here's Why...

[@SamuelLeeds]

It ALL starts at a Crash Course! Whether you're brand new to property investing or a seasoned investor, I can teach you strategies to help you succeed. Book £1 tickets here: www.samuelleeds.com/ytltour

[@moneytooeasy2797]

I so needed that video 2 months ago, not one person could from accountants to the Council could answer those questions and u just did confirming that I made the right decision! 👍

[@julianvictorian955]

You should remove this video. Some very vague and poor advice here. The level of taxation differs for each individual. Also, buying in your personal name is NOT anonymous - anyone can look up ownership on the land registry. Also, you can take entrepreneur's relief to close down the company and extract funds at a future point in time without taking dividends. My advice - if you have the money to purchase a property portfolio then seek actual financial and tax advice from a reputable individual. Ignore this video

[@rosujohnny]

What's the video about? Title says don't buy on limited, minute 9 says don't worry about it, doesn't matter...great advice

[@simonwalker8674]

Samuel Leeds as always full of sh*t. They just want you to pay thousands to go on there rip off courses.

[@garyjenkins7072]

I found that buying investment properties through my personal name was heavily reliant on a large income as lenders use that as a stress test. Buying through a company meant that lenders used the rental value rather than personal earnings. And with regards releasing equity and living off it from the property - again to be able to refinance, your earnings must be high enough to reflect the higher borrowing. I started off buying personal name but buying through a company definitely seems easier

[@domever7899]

With a higher income (in order to get a higher mortgage), you'll eventually be pushed into the 40% tax bracket. At least with a company, you can decide when to pull out your money and have more choice in general. You can also charge miles and other purchases through the company, which is a huge benefit. Companies are harder initially, but it becomes easier as you grow.

[@carlyndolphin]

My limited company owns property. I utilise rental income generated by the property to make contributions to my Self Invested Personal Pension (SIPP), thereby reducing my corporation tax liability

[@garyjenkins7072]

I found that buying investment properties through my personal name was heavily reliant on a large income as lenders use that as a stress test. Buying through a company meant that lenders used the rental value rather than personal earnings.

[@Dipscovery]

Not true, that's only if it is a residential mortgage. If you are using BTL mortgage uts based on the rental income.

[@garyjenkins7072]

@ just what I found dude, I never claimed anything around truth or not. When keying on BTL mortgage applications my personal income absolutely was factored in.

[@Dipscovery]

@garyjenkins7072 it's only factored in to see what tax rate you would pay on your rental income. If it makes you go over the high rate tax threshold you would need a higher ltv

[@The_Unintelligent_Speculator]

Ltd Co for scaling. Personal for handful of properties.

[@Dipo_Miller]

Well said

[@Ar5had07]

If someone has a 100k salary, there’s no point buying in your personal names, so it’s best to go to LTD company. WTF are they on about.

[@Sam-jy5tj]

Depends on interest rate difference between what is offered in the market and if you intend to use income from property or just want to leave profits in the company (not taking dividend). You can release equity (and pay yourself) tax free if it’s in your personal name when you re-mortgage. They explain this. More likely to be paying higher accountancy fees if have company too.

[@Ar5had07]

@ for eg I’m on a 140k salary but wanted a side business, I’m not gonna take money out of the company. So for me a LTD makes more sense.

[@Sam-jy5tj]

@ will only pay corp tax then.. can grown and reinvest faster.. but no point to ever pay yourself whilst earning that much. Either use to reinvest / grow portfolio in company or pay into pension. Will have higher running cost of company though.. interest / accountancy fees

[@julianvictorian955]

@@Ar5had07 Absolutely. This video is rubbish

[@MexicoCountryLivingBacktoEden]

From 2:00 Wow, you mentioned something interesting. I finally found someone in the UK practicing the concept of infinite banking/family banking, just like in the US, and combining it with property investing. Samuel, would you please make a dedicated video on this topic? I think it’s a fascinating way to leverage money more effectively than with traditional banks, and it would be incredibly valuable for those of us looking to maximize our finances.

[@Rickversion2]

A lot of odd statements in this video. Almost as if they don't understand what they are talking about.

[@manikh1796]

They know what they say. I had a real lessons learnt.

[@nickd1638]

Why are you not talking about Director's loans (you sending money from your personal account to your company's to buy the property) and therefore your company owes you money, so you can pay yourself tax-free since it is a reimbursement of the loan which isn't taxed. Right?

[@Devrim283]

Yes, but the company has to pay you back in 9 months or there are further tax.

[@nickd1638]

@Devrim283What?

[@nickd1638]

@Devrim283I think you are mistaking between the director taking a loan from the company and therefore the director owing the company. I’m talking about the director loaning money to the company (to buy the deposit for a property for example) and therefore the company owing the director. The company will then reimburse the director with the monthly profits made with the property (long-term loan/short-term loan)

[@nickd1638]

Do you agree or do you know of something I don’t know?

[@ltproperties6131]

Nickd you are right what you say but I never get this as being tax free because the money you invest/lend to the Co Ltd was yours and tax free in the 1st place therefore what have you gained?

[@S24S24-r9n]

For years in your videos you have taught people to use LTD company. Now in this video you talk about personal name, trusts and pensions in a very vague and roundabout way? Of course it matters on the type of vehicle or structure being first deal or 5th deal because it will have an impact at some point later in time. I don't doubt you know what you are talking about but please don't give poor advice, even if it is in a free video.

[@Sam-Taylor]

This video does not help people in any way shape or form. Your accountant doesn’t even discuss higher rate taxes and the benefit a company has over an individual when earning over £50,270. Also another point mentioned is when taking equity out of your property it is ‘tax free’, this is correct until the point of sale, once sold you will pay capital gains if owned personally and will have little to no equity left to even pay this tax liability leaving you out of pocket in the future. The video was rushed and the discussion was poor

[@iknowaiofficial]

In the UK, all land is ultimately owned by the Crown. Your title deed gives you the right to use and transfer the property, but true ownership remains with the state. Freehold grants indefinite rights, while leasehold is time-limited. The government can still seize property under certain laws.

[@MadDog_Rules]

That's what they're doing to the home owners in the way of the new Terminal at Heathrow. The government is taking the land and forcing homeowners out of their homes.

[@nickd1638]

@iknowaiofficial You replied to my message but it seems you have deleted it since? I was talking about Director's loan paid from the personal account to the company's account to buy the property (or just the deposit), and then paying yourself back by having the company's revenue used to reimburse the Director's loan (tax free). Your reply mentioned interest rates etc... Do I have to charge interest rates to my company? Why would I do this?

[@iknowaiofficial]

@nickd1638 I deleted it because I doubt the legitimacy of the information I got fed from an LLM. So I rather not mention anything at all 😅

[@nickd1638]

@@iknowaiofficial ah, ok. But do you know by any chance why someone would make their company pay interest on the director’s loan? Would it make sense?

[@whymillie]

@@nickd1638 maybe its a tax right off? If you own the company, and you are the director or your family are the directors. The money is going back to you.

[@davideyres955]

Completely anonymous? If you buy it in your own name it will be on the land registry and anyone can get that with a £5 enquiry.

[@121hassy]

I was just about to write a msg saying this. How's it anonymous when someone can do a search on your name and get results

[@WeeklyRanting]

they're shilling for the property market they don't want you to use an LTD they want too. While trying to convince their viewers it's a good idea to buy in personal name.

[@MadDog_Rules]

Every single rich person buys property under different LLC's. It protects them from being sued personally and allows them tax breaks in certain areas, depending on where/country they set up the LLC.

[@zalimkhan007]

​@@121hassyCome on dude...on companies house, you can do a search and look up everything by a directors name. But if it's in a personal name, unless I know which property is owned by whom, I wouldn't have a clue where to look!

[@marketingteam3128]

The person can rent out TO the LLC, which then rents out, to tenant. You re covered. Cs LLC takes the hit, as the go between "landlord".

[@bridgeinvest5661]

The Section 24 comments are not entirely accurate. If a property is owned by an individual, they can pledge that property as collateral against a company loan and still offset interest against tax. As long as the loan purpose is for business then thia is a common structure our clients use.

[@amaadmunir6478]

Section 24 limits the interest deduction to basic rate. So only affects higher rate tax payers.

[@Businessreadycoach]

How is it anonymous in your personal name, I can find out everything I need through land registry who owns the property.

[@TheSnookerGym]

The other guy slurs his words - difficult to understand especially if English is not first language

[@kevinleesmith]

Dividend and salary are not the only ways of taking money out of a company. Company pension contributions to ir personal pension also. Take 25% tax free when it 55 and leave the rest as ur kids inheritence

[@ltproperties6131]

Take 25% pension then reinvest into more property and refinance out tax free

[@Om54bed]

Or just invest the pension in property

[@kevinleesmith]

@Om54bed which will grow slower than an s&p invested pension and ull have to pay capital gains tax when u sell it, plus u can't sell bits of ir house over time but ubcan take money out of a pension as and when

[@whymillie]

How do you know you will live till you are fifty five? Why leave such an inheritance? Why not give the inheritance and invest in your children whilst you are alive?

[@kevinleesmith]

@whymillie and to do that u have to take an income that u will pay tax on. If they get the pot when u die there's no tax.

[@jamesspurling5570]

What ever you do it comes down to where the government move the goal posts. What the intrsset rates do and how much risk you take. You can find out who owns a property on land registry.

[@DK12_]

Silly not to own houses via a limited company, especially when you factor in the depreciation tax allowances. As well as the fact that as long as you keep reinvesting everything back into the company and don't plan on pulling your money out for the next few years you're effectively getting tax free money, which will keep compounding.

[@lawrencenisbett7579]

Tax free money in a limited company? You have corporation tax and then no allowance, it's not so straight forward

[@DK12_]

@@lawrencenisbett7579 Ofc there are nuances such as having to seperate the building from the land its on (as you cannot depreciate land) but other than that you can depreciate the building that is on it. Any repairs/touch-ups to a property are tax deductible, improvements (refurbs, extensions etc.) would also be allowable for depreciation (however you could try expense some of these as you can realise the tax benefits sooner that way) and being able to deduct all of the interest your property incurs. As long as you keep reinvesting through the business the only thing you will effectively be paying corp tax on is the deposits you make on the property

[@Dipo_Miller]

What's the benefit? If the property appreciates significantly you can't just take the money out .. its not yours its the company.. don't think it's worth it

[@lawrencenisbett7579]

@@Dipo_Miller plus if in a ltd company you want that money after refinance for anything, you pay tax on it, I learnt the hard way on another company I borrowed money from. They'res no escape

[@cr34t0r69]

But surely ownership of property or any asset when investing is not the key it's control that matters.. I don't want to own anything personally just have control of the entity that has ownership... I guess it all depends on the individuals goals. If you want to become wealthy set up a business and the initial phase is all about growth not income. Reinvest profits and require assets. Then when the business is large you can look at income strategies..

[@Wealthywise-shorts]

The WOW we been waiting for ❤

[@Jonathanfred-u6w]

Retiring this year, $82K biweekly, this video reminds me of my life in 2023, you have really inspired me in so many ways!!❤️

[@EstherGilbert-hs2oq]

I’m feeling truly inspired. Can you provide additional insights about the bi-weekly subject you mentioned?

[@Jonathanfred-u6w]

I raised 184k and Anna Kathleen Sanford is to be thanked. I got my self my dream car 🚗 just last weekend, My journey with her started after my best friend came back from New York and saw me suffering in dept then told me about her and how to change my life through her. Anna K. Sanford is the kind of person one needs in his or her life! I got a home, a good wife, and a beautiful daughter. Note!:: this is not a promotion but me trying to make a point that no matter what happens, always have faith and keep living!!

[@christopherdaniel7823]

Whoa 😲 I know her too! Miss Anna Kathleen Sanford is an incredible person who has brought immense inspiration and positivity into my life.

[@christopherdaniel7823]

I meagerly kicked off with $2k, and the results have been Jaw-dropping TBH!!!

[@Maestro-p5u]

[@josephoshiotse2341]

Perfecting timing. was literally just thinking about this

[@Dpul945]

I’d love to see the workings on that because I’ve done the workings on Ltd BTL rates v personal and Ltd is by far the better route in terms of tax

[@MarkusKanditt]

What you didn’t mention was paying profits from a limited company into a SIPP. This comes directly off your corporation tax. I currently only profit from my 25% allowance so I pay no corporation tax and no income tax.

[@adamwoodruff7373]

Silly headline but we know what that is. You essentially conclude there is no right or wrong but comes down to personal situation and other factors. Cool.

[@cryptostatto]

Being interest only during an increasing cost of interest through a property company with it being harder to find good tenants is not necessarily a good position. Good point on borrowing rates.

[@jh8660]

Sam leeds literally knows nothing, neither does the other guy

[@samhama5048]

It’s incredible ,every man with a cheque book thinks he’s a property guru 🤣

[@whymillie]

It's easy to sell a dream. You can't blame them. It's easy money. Just look at the comments.

[@philipo3336]

Samuel basically admitting to mortgage fraud on video. Be careful.

[@tjsoletsgo]

Watching. New landlord here. Totally thought the ltd co option was better for liability and protection purposes

[@The_Unintelligent_Speculator]

You are still a gaurantor for property in a limited company so still susceptible to liability

[@Newmusicreview]

Yes the rules have changed over the last few years, I had properties in Ltd Co the last 20 yrs...no issues,.

[@RTMgi9]

The tax is never guaranteed to stick, its been increasing and probably will increase, therefore waiting to liquidate may be a bad option.

[@stephenpeacock8592]

You thought absolutely right

[@manikh1796]

OMG for useful info. That is right. Interest Rate is higher. You are more under magnifier for tax. You pay more tax. Stamp duty higher. cost of accounts higher. And if you are earning with property under a certain tax bracket probably paying less tax if buying property in your name by not paying 25% corporate tax.

[@kyle286]

Doing the castle within the same limited company as your training funds, and deal selling funds allows you to use all of that money to put into the castle right? Why did your accountant pull a face?

[@Clarky006]

Confusing format/title for a discussion, it's circumstantial. If you're looking to expand into more properties over time, company. The benefit of offsetting repair cost and maintenance against Tax is a no brainer. Also longer term view, if you want to sell the portfolio into retirement the valuation and transfer of ownership is more straightforward.

[@rench1984]

Interest rates may be higher in a limited company, but if you have a well paid day job and are higher rate tax payer, it doesn't make sense to own it in your own name as everything is taxed at 40%+

[@rajpuri3267]

Properties personally owned do you do interest only? Also do you refinance of the capital growth as well?

[@cjb61171]

Buying anonymously has its advantages hey Samuel. Like being able to overstate

[@DJTeji1]

have a couple of properties in personal name the rest should be in LTD Company

[@Andy5c]

100% agree with this guy, hardly any free legals and valuations through a company mortgage as well so that's another £1500 or more... and your extra accounts fees. Its a fine balancing act, especially as when you want your money out in 10-15 years dividend tax could be what 10%, 15%?? or more!!! So then you are defo worse off.

[@1974bora]

I just got a btl mortgage in a ltd company at 5.4% with free legals through Aldermore. I met this guy and asked him a technical question about property tax and he didn’t have a clue what I was talking about. 🙄

[@ahans1792]

​@@1974bora Oh great! He's another YT graduate! 🤦🏻‍♂️

[@DiegoCore]

Also in limited company the mortgage can be tax deductible so that saves a lot of money .

[@amaadmunir6478]

Just the interest portion

[@ralucauk]

great chat! could we have an episode with Sue? her property journey, lessons she learnt the hard way, best deals, parenting wisdom etc

[@darrenmunro2880]

Does Simon mean you can refinance your main residence to raise capital that’s tax free?

[@simontierney3813]

Best advice in this video, subtle though it was, is to do the maths. The real maths of actual interest rates on mortgages, mortgage product fees (these are massive these days) and tax implications including mortgage relief factors and corporation tax plus tax on withdrawals from the company. Gets a bit complicated because you can pump money into a pension from a company to reduce corporation tax but perhaps ignore that for now. Actual calculations is key!

[@whymillie]

That is exactly why they are increasing taxes. They want more people to pump into their pension schemes.

[@HKHK-e9n]

This is great thank you. If I buy in personal name can I - deduct expenses such as: Letting agent fees, Property maintenance & Mortgage interest rates?

[@ruhaluddin]

Not mortgage interest, but you can claim a tax credit, but that’d be at 20%

[@HKHK-e9n]

@ ah ok 👍 thank you 🙏 buddy

[@Sam-jy5tj]

You can’t put residential property in a pension.

[@mattleelidbetter]

I do feel this buying in a Ltd company is pushed by government hence I stood my ground to keep in personal good interview

[@carlyndolphin]

Personal name isn’t tax efficient

[@paulh1529]

I was interested to see where this could go, but honestly I couldn’t stand the tone of the guest. Just BS too.

[@jordanhughes3137]

If Samuel Leeds says it, do the opposite. Full of shit.

[@Helloworldwrjfjrjrj]

Really confused so are you suggesting to buy in a trust or in a pension because I thought it was your personal name they can potentially sue you for it in litigation

[@businessaccount7813]

What your saying is not quite correct if your ltd company is called Bricks R us Ltd how does that tell people where the property is or who your tenants are especially if you use your registered address as your accountant? I don't understand how you think that wouldn't be the case ? Or are you just trying to wind people up to comment ? Interesting discussion though

[@carsv.2501]

Great video, could you do a video on how to buy property with your pension? Like you mentioned, a hotel, for example….

[@brianlopez8855]

Everyone is a property expert these days, here are another two.

[@SamuelLeeds]

I’ve done hundreds of deals and Tim is a chartered accountant but okay 😘

[@TigerLilly-ch9ue]

Fantastic informative video - it shows 2 sides of the story …

[@Littlepiggy-l6k]

Omg this chat it’s so messy they jump from one think to another

[@deathpod1975]

Anonymous is not named or identified. Even if you purchase private you could be named via HMLR. If that was not possible then there are other ways to find out who owns property. If you are looking to build a portfolio then there is a perception benefit to have a company. If the property climate is tough then a professional set up goes a long way rather vs Joe Bloggs. If you own lots of properties and need management or other services do you look for a professional company or some bloke called Cliff who claims he works in property.

[@astutepropertymanagers]

what of the Asset Protection, Liability Exposure and Estate Planning Complexity issues involved?

[@leighrice8279]

Could you kindly share the details for this accountant, please? Many thanks. 🙏

[@BobsBusTheDriver]

...my portfolio...debt...no tax...pay yourself from dept - tax free...exaggerate my income. Love all this, but please 'never' complain about the state of the roads, with the increasing crime Police are not able to cope etc. where both the government and councils are having to borrow money to replace your missing 'tax-dollars’.

[@KienTang-y8u]

Did he just admitted to committing Tax fraud by exaggerating his income on his Self Assessment to HMRC?!? Silly lad, just because HMRC are getting more tax revenue from your exaggerations it doesn’t mean it isn’t tax fraud.

[@krisjenkins4167]

Interest rates are the same in ltd company as indidual with some lenders.

[@matthewdavidpope]

Some arrangement fees are shocking though

[@krisjenkins4167]

@matthewdavidpope yes, but I think this problem isnt specific to ltd company loans

[@matthewdavidpope]

@ I think it is as it’s usually 999 ish for personal. Ltd counts 3 per cent of the loan average

[@krisjenkins4167]

@@matthewdavidpope around a year ago my lender (kent reliance) were only offering percentage fees on ltd company loans. 3%, 5%... today they are listing the percenages still but they are also offering a set amount of money for the fee. e.g. 3% of a £500k loan is £15k. Or you can pick a product which only costs £2k fee.

[@Calvin23]

I’m not sure this is particularly great advice as owning property in london your mortgage is not going to be £400.

[@griptopia]

who is the nice chap you are talking to i don't see a mention

[@bodyproof-healthandperform9510]

Probably the best video I've watched so far this year!! Well done boys.

[@HaHa-bc4zr]

"Live off the growth" 🤣🤣🤣🤣🤣 This guy is an expert?

[@Newmusicreview]

Just banging on about his own worth...

[@jasonng3194]

why would you withdraw money from a limited company? that defeats the whole purpose of having a limited company

[@Dipo_Miller]

You may need urgent cash or wn emergency?

[@jasonng3194]

@@Dipo_Millertherefore you are paying 40% tax in order to build up your emergency cash?

[@Dipo_Miller]

But sometimes you need that cash bulk ? You can sell the asset deduct expenses and cash in ( depending on your tax rate).... plus you pay higher interest rate and higher operating costs. Everyone is different but I don't want to hold a property for 20 years in a Ltd co ( would even bite you more if it's significantly appreciated) .... 5 to7 years sell up and move on.... you live life only once 😊

[@SteveRogers461]

Ridiculous points made in this video

[@aamirqadri1302]

This podcast was laughable, sadly he locked himself with a ticking IHT tax and trying to defend bad long term tax policy !!

[@spencerstock1936]

Samuel please help.le

[@petercooling3503]

🔥🔥🔥

[@rvmajor]

He doesn't speak clearly..

[@robbie609]

what a load of nonsense

[@robbie609]

this is like a puff piece by HMRC !