Houses

Houses

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A client of mine has 3 houses which he is converting into residential flats and will be letting out on completion. In the future he will be purchasing a few more houses with the same intention.

He is questioning if he should put the houses in a company or just own them himself.

I always believed that houses should not be put into a company since when you sell them you will have to pay tax on the profits and when you remove the money as a dividend you will have to pay tax on the dividends.

I would be grateful for some advice in this situation.

Many thanks

Saima Wahid

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By User deleted
19th Nov 2008 12:27

Houses
As is often the way in tax, the answer is not entirely straightforward. Depending on the facts and future intentions, it may be beneficial to retain in personal ownership for a period of time as a letting business, incorporate the business and put a property management LLP (or partnership) alongside the company. Obviously the exact structure would depend on the precise facts.

www.mosaicprofessional.eu - if you want to share more facts in return for a more considered response.

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