Will UK Property Limited Company avoid the Section 24 Mortgage Interest Relief Cap?

[@UK-Property-Tax-Accountants]

2020/21 update - Incorporation tax relief of moving buy to let properties to a limited company: kzbin.info/www/bejne/b3-Tn6B3hbB4nNE

[@andyhornett4507]

I wish my accountant was this chatty and straight forward!

[@UK-Property-Tax-Accountants]

Bless you - that is so kind of you to say

[@tasospapanastasiou9274]

Well explained! Most people do not know that the Tax on dividends makes a limited company not a good proposition! The amount of paperwork and time taken to complete the forms makes a limited company a NO! Well done!

[@UK-Property-Tax-Accountants]

Actually I would only use a limited company. Courses for horses I feel in relation to your position as it is with many others Using a limited company is certainly not for everyone but a company that makes significant profit or has a risk it is highly recommended

[@aidansmyth4842]

At last a video that explains the true costs and what happens when you need to extract the profits to live on. All other videos ignore this point. I am an ACA myself and am a bit fed up of other accountants and property advisors selling limited company structures to earn fees when such structures may not be right for their clients.

[@UK-Property-Tax-Accountants]

Isn’t that a fact. Well said, agreed.

[@fardinst5883]

One of the main benefits touted is the reduction in inheritance as growth shares can be used for kids and your overall inheritance can be reduced.

[@UK-Property-Tax-Accountants]

Do be careful what you read as this is not straight forward as it would seem. Do look at growth shares though

[@Mr_Sh1tcoin]

Thank you for the break down. I think though the best advantage of the company is the tax deferral aspect; sure you will pay like for like tax in the end, but the benefit of the company is you can choose not pay yourself cash profits and reinvest, saving the dividend/income tax aspect until a later year/if ever at all. You don't have this luxury as an individual.

[@UK-Property-Tax-Accountants]

Hi Mr G, The more that I use limited companies myself and educate other people on limited companies the more I feel that they are beneficial. You are right to point out the tax factors and benefits. I am now starting to see the power of limited companies when it comes to legacy and wealth planning throughout the entire family.

[@keithstewart511]

useful again. I am not a high rate payer.I am not sure the extra work and costs of a company would benefit me. I would need to take out the money as my income.

[@UK-Property-Tax-Accountants]

There are different reasons for people using a limited company. The first one is the most obvious, which is income tax. The second benefit of a limited company is a reduction in capital gains tax rates. The third and final benefit of using a limited company is inheritance tax reasons of passing assets to loved ones without paying the 40% tax on death

[@mauritiusbleu]

Hello, everything about this video was very informative. It gave me a better understanding of the pros and cons to either strategy. Thanks

[@UK-Property-Tax-Accountants]

I am delighted that the video was useful thank you for the kind comments

[@gulmeah3087]

Hi I truly understand your video and thank you for the time you spent explaining this .I have been advised by my accountant to go into limited company I am not too sure now after seeing your good video that I move to limited company

[@UK-Property-Tax-Accountants]

Hi Gul, thanks for the message. I do see a lot of accountants informing their clients to use a limited company. I think there are many pros first there are equally as many cons of using limited company stop Using a company for some people could actually be a huge disadvantage

[@gulmeah3087]

@@UK-Property-Tax-Accountants it is still a bit too much to take in still so I am exploring all your you tube on this subject. I am considering to book an appointment with your company who actually specialises in property tax

[@TheImpersinators]

Im new to this, but im under the impression if you want to go into property for the long run, use the profits in the company to buy more assets, until eventually you can leave the 9-5 and just live off the company. in which case the tax will be lower and everything is sunshine and rainbows right?

[@TheImpersinators]

i hadnt fully watched the vid when i commented that xD

[@UK-Property-Tax-Accountants]

Spot on

[@leecourtman5281]

Depends on your strategy to be honest. I feel you should mixed your portfolio. One for cash flow now and one where you live off in retirement.

[@UK-Property-Tax-Accountants]

Great tip

[@teresamartini10]

Hi Lee, what do you mean by that? Use the income from one property for cash flow and re-invest the profits from the other company building up to retirement? Many thanks.

[@nikkion2140]

This is helpful. It could have been even better if you could have presented side by side examples of ceilings of rental incomes for base case of 20% tax and 40% tax band vs. equivalent Ltd structures.

[@UK-Property-Tax-Accountants]

Great idea for another video

[@tamara9422]

I'd love an accountant like you! Great at explaining and simplifying things down. Great video Simon!

[@UK-Property-Tax-Accountants]

Thank you that is a kind thing to say

[@eshot5496]

Great video! Just i a bit concerned where you said "Allocate property income between spouse " can you explain a bit more in regards of this. Thanks

[@UK-Property-Tax-Accountants]

Hi there E Shot What is your concern or question you had in mind

[@lulubel38]

Hello - thank you very helpful indeed. What about if you change your mind? For example you set up your Ltd company reinvesting all your money back into the property and then you decided to leave your job say 10 years down the line. Would you effectively have to sell the company to yourself? Or dissolve it and transfer the assets? I image there are some complicated tax implications for that? Happy to have a consultation to discuss as well Thanks

[@UK-Property-Tax-Accountants]

You would have to sell a property from the limited company to you personally. They are limited company would have to pay capital gains tax. You would also have to pay stamp duty land tax when purchasing the property

[@violafeng9349]

Thanks for the informative video. It seems that the tax is very high if you want to extract more than 2000 pounds out of the company!

[@UK-Property-Tax-Accountants]

It does very much depend on your own personal tax situation for sure

[@robertturner9435]

Good video but you did not speak about inheritance tax in a property company. As a retired person should we use a property ltd company as the main goal is to save on inheritance tax? Retired with a good income and 12 properties inheritance tax will be a problem. Can you do a video on property ltd company and inheritance tax? Thanks Bob

[@UK-Property-Tax-Accountants]

Hi Bob, Sadly I do not specialise in IHT so I won’t be able to do it justice. Equally IHT is not mitigated through a limited company as an investment in own name or a company is still subject to IHT.

[@robertturner9435]

Thanks if all my family (kids) own some of the property company dose this help?

[@UK-Property-Tax-Accountants]

Yes and no. Sadly this is such a complex area that a comment on a forum would be quite dangerous

[@YorkPhotoWorkshops]

Thanks, that's a great explanation. If you buy through a company though, would the deposit you pay be classed as a director's loan, therefore reducing the taxable profits?

[@UK-Property-Tax-Accountants]

It would create a loan but does not act as a cost.

[@roystonhope628]

Oh, sorry...forgot to mention that i would also be thinking in investing in Commercial property too at some point and considering SSIP as a vehicle to do so. Thanks again!

[@deanskidmore261]

I would use a SSAS as it’s more flexible with more options

[@FreeWareFrolics]

So, if your looking to buy properties cash, with no mortgage, theres no major monetary difference between own name and ltd company? Esp if looking to take money out for lifestyle?

[@UK-Property-Tax-Accountants]

I would argue that having a limited company whereby you are extracting all of the money would be actually worse than owning property is in your own name

[@jameskelleher2995]

If selling a property in your Ltd company and wanted to to reinvest the profits into another property straight away, do you need to pay corporation tax on the profit from the initial property sale.

[@UK-Property-Tax-Accountants]

Short answer but yes if used for investment purposes (I.e. receive rental income).

[@SofiasChristmas]

Love this video, made up my mind what I’m going do now. YES!

[@UK-Property-Tax-Accountants]

Good to hear

[@chanchan9406]

a great video. Thanks! as you suggest, if retire in 5 years time, setting up a Limited company is not a good idea. May I know how to exit the mortgage? selling the property where will also no income which may not be a good idea. Besides selling property, what are the options to exit the mortgage? how to refinance to get mortgage in order to reduce the income tax if rental is the only income? will bank give you the mortgage if i am retired? thanks.

[@UK-Property-Tax-Accountants]

Done great questions here. Best to book some time with your accountant to get these answers as there is a lot of detail to get through. Best of luck 🤞

[@jasonmg9144]

I am thinking of opening a company to avoid paying too much tax. But your comments have left me more confused. So what should I do now?

[@UK-Property-Tax-Accountants]

Speak with your accountant. These videos are here to provide inspiration and guidance for further mr action to be taken I personally do a tax consultation for £375 if you use KZbin25 as the coupon code on our website www.optimiseaccountants.co.uk

[@LeoSpeech]

Great video! I appreciate the value you're giving out in this video and the time taken to make it. So, If you're planning to invest in BTL property in cash with no mortgage involved, and you're also heavily focused on growing your portfolio via rental profits then broadly speaking a limited company is the way to go? Im thinking smart use of your initial directors loan could work to speed up this growth also.

[@UK-Property-Tax-Accountants]

I would say potentially a limited company is the way to go but does depend on your personal plan for the future as well as now

[@cryptovision1185]

How much do you pay in tax, when you sell your property?... great video, keep it up

[@UK-Property-Tax-Accountants]

That very much depends on how much you bought it for and then how much you sold it. Tax may also depend on your taxable earnings in your own name

[@hugowells656]

Would you not be better to refinance than sell?

[@ianpaul8881]

can you claim mortgage interest back on a ltd company. ie if you have an interest only mortgage, do you get to reclaim the interest finance cost the way that you used to if you owned property in your personal name before section 24? great vid, thanks

[@UK-Property-Tax-Accountants]

Mortgage interest is allowed to be offset fully in a limited company just as normal This is one of the reasons why people invest via a company structure.

[@ryansmith9688]

Thank you so much for this. Plenty of food for thought. Can you offer some advice on the following...? I am hoping to invest in property with my parents 50-50. I don’t want to shackle their money to the company but I am happy to keep mine in there for the long term. I’ve seen your vid about dividends and vouchers etc. I just wondered what you would consider the best approach to be? Dividends, vouchers and salary? Or something else entirely? Thank you so much for your help. Your videos are so helpful. Best of luck.

[@UK-Property-Tax-Accountants]

That is a good question. It may be no surprise when I say it depends on each and everyone’s circumstance as a generic piece of advice may be very costly

[@ryansmith9688]

Optimise - UK Property Tax Specialists Haha fair enough. Thanks.

[@Ferdows55]

Hi Simon, very useful.High rate tax payer. How allocating buy to let to partners or civil partners work?

[@UK-Property-Tax-Accountants]

You can use a deed of trust and form 17 to reallocate some of the property income from one spouse to another A solicitor can draw up a deed of trust but they will not necessarily do the form 17 for you Optimise Accountants provide this service for their clients

[@chrismorgan6057]

Great advice I set up a company but have found without 3 years landlord experience getting a Limited company mortgage is rather difficult. I have property in my own name and am currently also employed I have been offsetting income from property (unearned) by ploughing 25% of my income into my company pension but want to leave employment in a couple of years what would be the most tax efficient strategy to do this?

[@UK-Property-Tax-Accountants]

Great question. A detailed conversation with your tax specialist will help you there. Please do not read a forum and base a tax strategy on what you read on a free forum

[@bhupeshmistry2483]

Hi Simon this is an excellent video and very well explained. I have a couple of questions that I am hoping you can answer: Me and my wife have 2 properties, one in my name and one in her name. We are buying a third in our joint name which we will be moving into towards the end of Feb 2021. Our other 2 properties we will be renting out, but we were thinking of forming a partnership so that both rentals can benefit from my wifes lower rate income tax (since she is 20% and I am 40%). One thing I am unclear of is whether a partnership is exempt from section 24 or not? Secondly, at this stage I am unsure whether we will be building on these 2 properties and so therefore not looking to rush and set up a LTD (like you pointed out in the video). But other than having a higher mortgage interest with LTD companies. What other costs are there in setting up a limited company? Approximately how much does it cost to register on companies house etc?

[@UK-Property-Tax-Accountants]

To be fair these are not really quick questions and anyone giving short quick answers may put you in harms way later in life. Pease book a tax consultation with your accountant to go through the above and work with one another to find the right long term solution

[@sh7184]

Is buying a property through a company with a spouse safer in case of a divorce in the future?

[@UK-Property-Tax-Accountants]

Sadly I am not a legal expert. Get in touch with a family lawyer

[@DIPU1036]

Hi Simon, Question: Husband and wife owns rental properties. When do you recommend they incorporate? When they hit £100K net income? (but gross of tax) Which is better for CGT and IHT planning.... Personally owned or Ltd?

[@UK-Property-Tax-Accountants]

Please do not take advice from any social media platform in association with this question. There are many clients that are much wealthier and earning more than £100,000 and still have not incorporated the property business. Armageddon will not arise just because you are not using a limited company. Please be aware of so-called specialists who tell you otherwise

[@DIPU1036]

@@UK-Property-Tax-Accountants I shall booking a Tax consultation soon.

[@DIPU1036]

@@UK-Property-Tax-Accountants Question not asked or addressed before: Under what circumstances would you NOT incorporate even whilst earning more than £100,000? I will be eternally grateful for an answer. Many thanks.

[@UK-Property-Tax-Accountants]

I will only be too pleased to be of service

[@DIPU1036]

OK. I fully appreciate you are not here for totally unpaid advise. So depending on circumstances, is there a case NOT to incorporate even with £100,000 profit? Now making a list of all other questions for the consultation.

[@imogenaylwin4390]

Hi Simon, a really informative video, thanks so much! We have a question for you if you can help: My partner and I are thinking of investing in property for the long term (we're in our late 20s). We have saved enough money for a deposit for our first buy to let property. We are hoping to buy a few properties over the next decade, so I believe the Ltd company would work best for this as we could reinvest the profits into buying further BTL properties rather than withdrawing it as income. I also wonder if our property portfolio is housed within a Ltd company, would this mean we still get stamp relief for our own personal home if we buy one in the future as individuals? Thanks!

[@UK-Property-Tax-Accountants]

This is a great question. As you can appreciate that this is a open ended question. My answer needs to be good enough to fulfil your requirements over a 5 to 10 year period. Doing this on a KZbin forum will be disingenuous in terms of the quality of advice I could would give you. It is far better for you to book a tax cool with us using the code KZbin25 to get a definitive answer.

[@humayunkabir-le5ln]

yes - I was advised to incorporate into ltd co

[@UK-Property-Tax-Accountants]

Great news and I hope it all goes well for you.

[@humayunkabir-le5ln]

Thanks, But as a result of this video I’m left confused whether to do so or not.

[@UK-Property-Tax-Accountants]

Oh sorry the video made you feel this way. Maybe forget you watched it

[@christinebudd8575]

Very informative video - Ltd company name I have secured and planned to trade from looks like will not be best method for time being.

[@UK-Property-Tax-Accountants]

Hi Christine, if I had £1 for every time that I told the client to close down a limited company I am sure that I would be a millionaire 10 times over. I am somewhat disappointed by the amount of publicity that them to companies gets has been a great tax savings strategy. This is clearly not the case for everyone and there does not seem to be a balanced view out there

[@knownsensesocialmedia7618]

You can pay yourself tax free dividends + minim salary under the threshold and save more. Also if the properties are in your name any thing goes wrong your personal property is not saved from this?

[@UK-Property-Tax-Accountants]

To be fair landlords have owned properties in their names for hundreds of years so there is very little risk associated with BTLs, just clever marketing techniques from accountants. Property development does need a company structure due to the increased level of risk.

[@UK-Property-Tax-Accountants]

Don’t forget that the company pays tax of 19% and you then pay income tax do not a straight forward comparison

[@johnmoore653]

£2K tax free dividends for 1 person, what if there are 2 people? Do they share the £2k allowance?

[@johnmoore653]

Allowances--are expenses getting the property ready, allowable? Even when incurred before the company started?

[@UK-Property-Tax-Accountants]

The £2k tax free dividends is per company

[@UK-Property-Tax-Accountants]

These costs are allowable provided that the house in a let table state but making cosmetic changes

[@VV-mi8ms]

Hi Simon, thank you for the great video! I am 4k short to be a high tax payer and I'm going to buy my first property. It will bring 15,000 rent and get me to the high tax bracket if I buy it under my personal name. I will keep my job for another 9 years and I do not need the cash from rent. Would you suggest buying it under my name or under a limited company? Thank you

[@UK-Property-Tax-Accountants]

I would rather than give specific tax advise on a KZbin forum if I am honest

[@janetcarpenter2875]

S. 24 of what Act?

[@UK-Property-Tax-Accountants]

Check here: www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords

[@brianlentz2080]

So is it correct or not that a basic rate taxpayer can still offset the mortgage interest cost as an individual with a BTL...nobody seems to want to answer that question... can you?

[@brianlentz2080]

Replies within 36 hours, wow.. looking forward to it.

[@UK-Property-Tax-Accountants]

Mortgage interest costs are no longer offset against your rental income to reduce profit. You do however get a 20% tax reducer based on the mortgage interest. This means that your mortgage interest is £1000 you will get a £200 taxed reducer. Sound strange but it’s true

[@UK-Property-Tax-Accountants]

How about a reply within just one hour?

[@brianlentz2080]

@@UK-Property-Tax-Accountants Thanks but what is a "tax reducer" (offset against the tax bill?) and how does it differ in practise for anybody earning under the higher rate threshold than pre Section 24 (so under £50,000 income pa as an individual 2021) and can you now "share" income with a social partner and thus personal allowances if a property is in one name...so say rental of £40,000 across properties split between two means £20,000 each less tax reducer and two sets of personal; allowances... or what now?

[@UK-Property-Tax-Accountants]

To be fair I think it is worth and speak to your accountant about this. You have a lot of good questions that deserve a good answer, sadly there is only so much I can do on a KZbin channel

[@DaTestKa]

Hello Simon. Very informative videos. Still learning.. I have a question if you could please answer it. I want to invest in property for my kids when they are 18 in 10 years. I want to buy/target 50 properties in 10 years. That can be transferred to them easily or sold to third-parties if needed. I need full control of each property and save costs of solicitors/land registries too. What If I buy every time a property in their individual limited company? I am ok with administration/accounting of all companies myself and it will cost only the confirmation statements costs annually plus any incorporating cost. Does it sound ok or I am missing something?🤔 Thanks

[@UK-Property-Tax-Accountants]

To be honest you need a tax consultation. This is a very complex area and a lot of foundations you need to consider. Please don’t take tax advise on this subject on any such AJ media platforms as it will be free, but costly in the future.

[@Mr_Sh1tcoin]

"I want to invest in property for my kids when they are 18 in 10 years. What If I buy every time a property in their individual limited company?" Are you saying you'd set up LTD companies for your children now or once they reach 18? You can't do so before hand as children can't be shareholders or directors of companies. Also 50 properties in 10 years? You need to stop watching Grant Cardone videos mate, you couldn't even do that if you won the lottery.

[@UK-Property-Tax-Accountants]

You need to be of legal age before you become a company director. The set up of a limited company for children as shareholders would come under the anti-avoidance rules. The income generated from the limited company would be taxed in your hands because you are the one that is putting all of the money into it. Additionally, I know for a fact that banks and lenders would not allow children to be the only shareholders of the company. You probably need to have a tax consultation to understand the optimum, legal, tax efficient company structure for you and for your family.

[@DaTestKa]

@@Mr_Sh1tcoin You misunderstood. I know children can't be part of the company till 18. I meant to buy every property in SPV company, Of course I am the only shareholder. Buying 50 properties in 10 years is ambitious but not impossible. FYI i have already got 6 properties now so the future is bright 🤗 And remember. Keep watching and interacting with any expert you can. you learn the code of conduct, understand their point of view and mental depth. And use it as a guideline. Don't follow them as they have made lots of mistakes. Recognise their mistakes how they rectified them and make your plan. As the famous pirate Hector Barbossa said. The code is more like a guideline than actual rule. Welcome aboard to the Black Pearl.. 😃

[@Mr_Sh1tcoin]

​@@DaTestKa Cheers mate.

[@martinrigg7087]

Hi, if the properties are in a ltd company wouldn't i be classed a basic rate payer. would this mean I get the first £14 500 tax free, then a further £35 500 at 7% dividend rate?

[@UK-Property-Tax-Accountants]

The rates are correct apart from the dividend tax which is 7.5%.

[@UK-Property-Tax-Accountants]

Once you become a high rate taxpayer you pay 32.5% income tax on dividends

[@flexddd]

Would it be possible to set up a Ltd company structure to "manage" your portfolio (purchased under your own name), such that any rental income is charged to the Ltd, reducing the individuals rental profits/income to zero. The money then just sits inside the Ltd company until the next purchase, or to be expensed to ones pension etc.

[@UK-Property-Tax-Accountants]

Sadly not as HMRC introduces GAAR to prevent the movement of taxable income to a connected entity such as a limited company

[@oneworldcafe]

If I bought a property through a company and paid myself just below the primary NI threshold is that going to qualify me for class 2 NI and pension qualifying income? As that would be two good reasons to invest through a company.

[@UK-Property-Tax-Accountants]

Yes potentially it would be

[@kennethward7331]

ken ward - confused about the following - can you help? - in a personal portfolio and also a company portfolio, when can, and can,t, funds be withdrawn, tax free, and still receive tax relief on the mortgage interest on the remortgaged funds

[@UK-Property-Tax-Accountants]

Extract cash from a company: kzbin.info/www/bejne/fWWyiYevabaZiKM

[@UK-Property-Tax-Accountants]

Companies do benefit from mortgage interest cost as a tax reducer

[@kennethward7331]

@@UK-Property-Tax-Accountants your videos and quick response to questions is excellent.Will now subscribe to all your videos.

[@kennethward7331]

what about if funds are withdrawn, or reinvested, or exceed the capital account. same question for a personal portfolio@@UK-Property-Tax-Accountants

[@UK-Property-Tax-Accountants]

Thank you 🙏

[@claridge8888]

Thanks, that was very informative. I'm a basic rate tax payer, even with taking full rental income into account, so I don't think Section 24 will affect me, is that right?

[@UK-Property-Tax-Accountants]

For most basic rate tax payers S24 does not affect them

[@UK-Property-Tax-Accountants]

I have created a new online platform that allows you to answer any of your tax questions. Click here for more details (also include a 7 day free trial) buy-to-let-property-tax.teachable.com/

[@relaxmeditateandsleep6886]

What I wana find out is in a ltd co. if you “re-mortgage” at the end of your fixed term and take the money out that way, is it taxable? As it’s just re-financing?

[@UK-Property-Tax-Accountants]

It is taxable if you take the money out of the company

[@relaxmeditateandsleep6886]

But not to re-invest I assume

[@UK-Property-Tax-Accountants]

If you reinvest the money via the company then no tax is chargeable

[@waqattak]

Very very handy and informative. Thank you so much.

[@UK-Property-Tax-Accountants]

You are very welcome and I am pleased the video was useful

[@mfkhan4anb]

No I don’t understand I’m going to need to speak to you regarding this how can I get in touch with you please can you let me know

[@UK-Property-Tax-Accountants]

Please see the video description on how to book a tax call

[@leannebell245]

I have watched a few of your videos and are very informative. I wondered if you could give me a little advice please? I own a furnished holiday let and have been informed at the start of opening it, to register as a Limited Company which I have done but now after watching your videos, I think this is the wrong thing to do. Is there are any way I can de-register as a Limited Company or fold my business and then carry on running the business as a sole trader and filing my self assessment including the profit from the holiday let via the property page on the assessment? Thank you

[@UK-Property-Tax-Accountants]

Sadly once the property is in the limited company it is very difficult to wind down the company and put the property back into your name. There are a few good reasons. Firstly, you are disposing of the property and therefore there is a potential capital gains tax and a stamp duty land tax charge on the purchase. Secondly, you may have had a mortgage put on the property. If that is the case you need to refinance your property in your soul name from the limited company. Albeit it’s may not of been the right thing for you to do you may now be stuck with that situation.

[@leannebell245]

@@UK-Property-Tax-Accountants There is no mortgage on the property, it was bought in full from parents. I knew this would be the case of being stuck as a limited company now it has been registered as one, I just thought I would ask. Thanks for the advice

[@UK-Property-Tax-Accountants]

You are welcome but I’m afraid it is not the news that you are looking for

[@thegreatiam6849]

Thanks for this explanation I currently have 2 properties in my own name and sm looking to purchase another 3 in the coming year. I am a basic rate tax payer earning 37k pa in my 9-5. I have a limited company but no properties in it and will not purchase any properties in it after watching your video as I aim to take all the profits for my lifestyle whilst reducing my 9-5 hours to earn 30k pa so that the profit from my 2 properties fall below the higher tax rate (and I get an extra day off to attend to ither things including my property business) My wife earns 12k pa. Would buying all 3 new properties in her name (or joint names) reduce the tax bill (had i bought them all in my name) if her combined income falls within the the lower tax band?

[@UK-Property-Tax-Accountants]

This might be useful kzbin.info/www/bejne/aHKXhWula9KkrtE

[@ramh7423]

Great content! I am a UK non resident interested in property investment(BTL). What is the best option for me? Also, Will I be taxed according to my resident country income(India) . Thanks

[@UK-Property-Tax-Accountants]

Not sure about tax in India. UK tax structure depends on many things but not a generic answer

[@KN-bx9nt]

I've been advised to purchase my next properties within a Ltd Co, something to do with being able to put more costs through (the cost of the actual property? the mortgage?) and also something about me loaning the investment (25% plus refurb, sdlt and legal) and being able to take this back from profits tax free. Could you help iron out my understanding of this as I'm not clear at all as to whether I need a limited company as currently only in basic tax bracket from current property plus self employed business earnings (a sewing school!). Thanks so much. Love your videos!

[@KN-bx9nt]

Ps planning to buy about £600k worth of properties over next couple of years to rent out

[@UK-Property-Tax-Accountants]

This might help kzbin.info/www/bejne/hpmngaV-q9aMd6c about using a company

[@UK-Property-Tax-Accountants]

Also see this video about putting loans into a company structure kzbin.info/www/bejne/iHy5oYawZsSabqs

[@gnchari1]

Best advice ever,

[@UK-Property-Tax-Accountants]

Such nice compliments thank you 🙏

[@MeMe-sj2cr]

Hello I only receive an income from property mainly hmos but my income is reaching the 40% tax bracket. Is now a good time to set up a limited company as I want to grow my portfolio rather then depend on future investments for lifestyle income.

[@UK-Property-Tax-Accountants]

It is possible that a limited company but please speak with your accountant before you do anything as there may be better alternatives

[@hugowells656]

Also as you bought them in your personal name first would you not have to have the limited company buy the portfolio from you and pay stamp duty again. Have you got tye money to buy your houses twice? If you have is really worth doing now at this stage?

[@MeMe-sj2cr]

@@hugowells656 I will be leaving the property's I already own in my personal name. Then I plan to purchase any new propertys via the limited company.

[@hugowells656]

@@MeMe-sj2cr ohh... i see. So pay income tax on those in your own name and pay cooperation tax/income tax/dividend tax on your new properties.

[@UK-Property-Tax-Accountants]

For many people this is the right solution. I would speak to your accountant first before you do anything

[@andyhornett4507]

Could you tell me....am I allowed to use monies sat in my LTD to but bitcoin or trade on the forex markets?

[@UK-Property-Tax-Accountants]

You can but I would not advise it. Risk levels are high here and seen many many clients build income through property but lose it through direct and bitcoin

[@romeocastillo2441]

@@UK-Property-Tax-Accountants gambling

[@teresamartini10]

Hi, How much can we expect to pay in accountancy fees to run a LTD company in initial stages holding between 1 to 3 properties? Many thanks.

[@UK-Property-Tax-Accountants]

Usually between £600 and £2,000 per year

[@leecraggs4137]

Well that's sort of changed my ideas, I thought running Ltd company was the better way to run a property portfolio, an seemed like to become an investor it was a no brainer.

[@UK-Property-Tax-Accountants]

I hope my though provoking video helped you to think things through

[@leecraggs4137]

@@UK-Property-Tax-Accountants it has but everyone seems to advise Ltd co for property is the way to go.. But you have me on the fence now🙈

[@UK-Property-Tax-Accountants]

@@leecraggs4137 I hope that these videos have been thought-provoking enough for you to consider all your options.

[@maqlab]

I’m really enjoying and benefiting from all the content on this channel. Question:as a foreign investor, would you suggest I set up an LLC for my buy-to-let portfolio? Also, how can I arrange for a one-on-one consultation with you?

[@UK-Property-Tax-Accountants]

Are you based in the US? I ask this because you mentioned LLC? A foreign investor can set up a limited company in the UK. You can book a tax consult here: www.optimiseaccountants.co.uk/consultation-emergency-tax-consultation/

[@pauljoneseyboy9615]

Yes, I was badly advised it seems. Didn’t do it anyway lol

[@UK-Property-Tax-Accountants]

Sorry to hear that. Please share your experiences

[@MichaelSmith-cx9tz]

Why have you taken corporation tax to be 17%?

[@UK-Property-Tax-Accountants]

The video was produced when Boris Johnson promised to reduce corporation tax from 19% to 17%. He clearly went back on his promise

[@roystonhope628]

Hello there. Very informative video so many thanks for sharing however I have a question. I have never bought property before and i am very much interested in doing so as i am self employed in the IT sector, have a Limited Company and funds in my business account doing nothing. I would like to eventually create a portfolio to hand to my children when i am ready but still draw a passive income from property for the next few years until i am bringing in enough to give up the day job. I have been told so many times that setting up a Limited Company would be tax efficient especially with Section 24. I know your video maybe contrary to that but some advice as to how to start with my funds would be much appreciated. Many thanks.

[@UK-Property-Tax-Accountants]

To be honest that is a little too much for me to answer on a KZbin channel. You might need a couple of hours to talk things through to get some decent analysis done as you would an IT project

[@chonnerone2964]

Great videos - my problem is I am a sole trader in my first year. I am running an SA business but the properties are in my father and brother's names - are the payments I send to them to cover their mortgages considered as rent or are they subject to Section 24?

[@UK-Property-Tax-Accountants]

Interesting question. The income will belong to your father and brother. You could charge them a management fee.

[@chonnerone2964]

@@UK-Property-Tax-Accountants Thanks for your reply. All the bills are paid from my account and I pay their mortgages. I was under the impression I could then do my tax return as a sole trader.

[@chonnerone2964]

Or do the three of us go limited. And then pay me (the low earner) out of that business.

[@UK-Property-Tax-Accountants]

@@chonnerone2964 Sadly not. You need to get some professional help to ensure that you do not get into any issues with HMRC, moreover your dad or brother.

[@UK-Property-Tax-Accountants]

The alternative is for you to do a rent to rent on the property. They will still need to enter the rental income that you give to them on their tax return.

[@rtaitm]

Fantastic video. I'm interested in speaking with you at some point about my own property business. What do you think about using an LLP or LLC as Tony Gimble seems to advocate?

[@UK-Property-Tax-Accountants]

Hi Walt Thank you for the kind comment We are not fans of LLPs and the use of beneficiary income company trusts goes against HMRCs GAAR in our opinion

[@davidwasilewski]

The other thing to consider is the fact that Labour will win an election one day. And when they do, I suspect limited company landlords will be hurt badly.

[@leecraggs4137]

I watched it understood it last time now im confused, surely enough you can just put your partner as i director on the company, also inheritance tax through personal is disgusting, does the government not think they have taken enough with stamp duty, tax every year due from your return, then they want capital gains or inheritance tax at the end..

[@UK-Property-Tax-Accountants]

Agreed on IHT point 100%

[@UK-Property-Tax-Accountants]

You can put your partner as a director too

[@jarekgasiorek3744]

yes

[@azizrahman9496]

Section 24 doesn't apply to ltd companies

[@UK-Property-Tax-Accountants]

Exactly right that why we like them

[@ikemottih1339]

Yes

[@AngelaRoberts-ql7dt]

Yes still very confusing

[@UK-Property-Tax-Accountants]

I am sorry to header that you feel confused. Be sure to book a call with us so that we can give you comfort and confidence

[@gordonrussell8161]

Undecided..

[@vwnige]

Great video

[@UK-Property-Tax-Accountants]

Thank you, that is most kind

[@mazinjasim1953]

hi i have 17 houses and borrowed 1.5 mil will LTD company better for me i don't have any other income rent income of £90,000 a year

[@UK-Property-Tax-Accountants]

To be honest that is not enough info to help you on this type of forum If you own that many properties ought to be seeking out a professional tax advisor to support your decision making process

[@mazinjasim1953]

@@UK-Property-Tax-Accountants hi i have 17 houses and borrowed 1.5 mil will LTD company better for me i don't have any other income rent income of £90,000 a year yearly interest payment of £48000

[@joee0964]

Thanks for the great advice and sharing such valuable information. I am about to make an offer on a property then convert into a HMO a first time buyer with my wife. I already have a 40k and rental income will be about 4K a month, what shall I do?

[@UK-Property-Tax-Accountants]

Book a tax consultation immediately to understand what your plans are long term to see if a company structure is right for you or not. Most of the generic answers I would give here are the same ones I placed in the video. You ca go on the video tips or book a tax consultation if you want more specific tax advise to meet your circumstances.

[@mauritiusbleu]

Great info

[@UK-Property-Tax-Accountants]

Thank you. What was most useful to you?

[@gordonrussell8161]

2 steps forward, 3 steps back !!!!

[@UK-Property-Tax-Accountants]

Hi Gordon What are the three steps backwards. Maybe we can help

[@gordonrussell8161]

@@UK-Property-Tax-Accountants ...Conflicting Advice on buying properties through a Ltd Company. Some say only if buying 3+ properties then it should be in a ltd co.

[@kennethward7331]

ken ward a Company is better for estate planning where shares can be gifted to children

[@UK-Property-Tax-Accountants]

Yes indeed. We utilise A, B, C share structures and growth/freezer share structures.

[@kennethward7331]

what is the difference ? we have gifted 25% total, ordinary shares to our children. Would freezer shares have been better and if so, can we change them ?@@UK-Property-Tax-Accountants w

[@UK-Property-Tax-Accountants]

Did you pay CGT and/or utilise your IHT allowances on the transfer? You can create new growth shares and usually quicker and tax efficient. Please do speak with your accountant to get a lowdown

[@interestingvideos4728]

Corp tax to increase to 25% from 1st April 2023.

[@UK-Property-Tax-Accountants]

Corporation tax will be phased from April 2023 so there will still be a 19% tax rate and a phase in to 25% once profits exceed £50,000

[@interestingvideos4728]

@@UK-Property-Tax-Accountants Thank you.

[@mattydiz199]

Where’s about are you based pls ?

[@UK-Property-Tax-Accountants]

We are all remote working so no longer have an office. We are the 21st century’s accountants

[@cryptovision1185]

Yes

[@osmangani3331]

Yes

[@johndavies268]

Yes

[@benarfa5706]

Yes

[@UK-Property-Tax-Accountants]

Yes, yes