I have a client who approached me with the idea of opening a ltd company for his BTL portfolio to be rented out in bulk to his newly incorporated ltd company and charging the rent at slightly above his costs (he is a high rate tax payer). I am inclined to think that this is feasible. am I missing something
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maybe
If the company is leasing properties from client you need to have documents drawn up properly pref by solicitor.
If client is considering transferring properties into ltd co,
You need to consider capital gains and stamp duty on transfer in and out of ltd co,
Costs of running company e.g. revaluations on regular basis.
Any mortgage or borrowings on properties.
Can he afford not to withdraw rent otherwise whole thing is waste of time.
Loss of capital gains exemption on sale of properties.