Own property personally but rent through company ?
My husband and I are buying a buy to let property, projection of net income to be around £10k per year. We are planning to buy a few of these in the next few years, so considering the impact of tax given we are both higher taxpayers. I consulted an accountant on the structure whether it is better for company to own the property or us personally and was advised "You purchase property as an individual but set up a limited company to declare rental income/expenses through it. When you sell the property you will be paying capital gain tax as an individual owner. The fact that you are individual owner of the property doesn’t stop you from putting the rental income through limited company. " This sounds like a great option, just want to check how valid is this ? Does this stand up to HMRC scrutiny ? Any kid of deed, trust that need to be set up for this to be viable ?
Appreciate any advice.
- property capital gains 200 2
- Transferring DLA between Directors 201 1
- Private doctors - Ltd company vs partnership 1,186 13
- Tips on meals 222 2
- Buy Samsung Galaxy Note 5 528 10
- Rental losses on jointly owned property 202 3
- Personal Tax 755 13
- Overpaid In Employers NI - RTI EYU for hundreds of employees 235 2
- Stumped - IHT 195 2
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 420 6
- No PAYE Registration but need auto enrolment 480 11
- HMRC now overriding SA bank repayment details on tax returns 1,291 33
- Credit management tools 169 1
- Write an article on latest tax changes for landlords. 781 20
- Incorporate to utilise dividend allowance next year? 426 7
- CGT and primary residence 199 1
- Marriage Allowance 301 3
- S455 and February year ends 354 7
- HMRC having technical difficulties 904 18
- Closing down loss-making company 470 5