What is the best structure for your HMO project?

[@officershandy]

Thanks for the advice!

[@kimberleyshapcottpropertytax]

Happy to help!

[@johnporcella2375]

If the intention is to sell in the future, something to consider are pensions. If sold under a company structure, any capital gain would be simply treated as a profit against Corporation Tax. It would be possible to make a contribution to a SIPP or a SSAS (or similar) and lower the chargeable profits, thereby paying less Corp Tax and boosting the pension fund which can grow tax free (and a SSAS could always lend money back!). A capital gain in a personal name is not part of NRE (Nett Relevant Earnings), so Income Tax cannot be saved using the pension trick based solely on the gain.

[@gobshite99]

Thanks 👍

[@kimberleyshapcottpropertytax]

That is a really great point and something I raise with clients when they are making good levels of profit. Key thing to be aware of is that it takes some time to set up a SASS so needs to have been done in the right timeframe for everything to fit together.