Hi Guys,
I was wondering what the ruling was around transferring rental income to a limited company. So the rent would go directly into the limited company and then it would pay the individual house owner the same amount as the mortgage (interest only) leaving the profits to be taxed via the company and paid as a dividend. Individual makes no profit so there is no profit to be taxed via self assessment.
I am sure HMRC would have a thing or two to say about this.
Has anyone done anything similar or does anyone know what the best way (if any) to vehicle something like this?
Thanks guys.
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How do you propose
'transferring the rental income to a limited company' - are you going to transfer the property to the limited company?
I have seen it suggested that a lease could be granted to the company so it can receive the rental income while the ownership remains with the individual. I have never been convinced of this route however and have not recommended it to clients but if anyone has any tried it I would be interested to know.