Property rental ltd.co vs partnership

Property rental ltd.co vs partnership

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I would welcome your views on whether you think it best to buy a rental property as a company or partnership.

We have already considered lack of CGT allowance and differing tax rates but there are still many other issues.

One issue is that I am having to get finance to fund my share of the venture. This is expenditure wholly and exclusively for the venture but I am not sure how I can claim it against tax as the loan is in my name and not the company's. Also, the initial rental profits will be meagre and will be used to pay off this initial finance. Has anyone got any ideas as to how the monthly 'profit' will not become taxable?

At present I feel i will be putting in money that I will then pay tax on to draw out, having not 'made' anything.

My preference is to be a sole trader but my business partner disagrees. Any non-insulting answers appreciated.
arthur

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By AnonymousUser
14th Mar 2006 14:50

Discussion

This sounds like a discussion topic rather than a message board Q&A matter.

Most accountants worth their salt will offer a free initial consultation with no obligations: so find one near you and have the discussion in the presence of someone who can weigh up the pros and cons.

Where are you?

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