Hi everyone
I hope someone could help with an advise. I have a business which is not SPV. I plan to buy a property for buy to let on it, thus using cash excess and stabilizing income via rent.
If I decide to change the existing business to an SPV, can I do so at any moment? I would like to avoid setting up an SPV now, it's increasing costs (accountancy, forms, bank accounts etc).
The current activity is risk free in the meaning that I won't have creditors to chase potential properties.
So it's great for me to attract more income and spend it back on properties to let.
Can anyone help please?
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If you can afford an investment property surely you can afford to pay for advice which takes the particular circumstances of your situation into account?Hi everyone
I hope someone could help with an advise. I have a business which is not SPV. I plan to buy a property for buy to let on it, thus using cash excess and stabilizing income via rent.
If I decide to change the existing business to an SPV, can I do so at any moment? I would like to avoid setting up an SPV now, it's increasing costs (accountancy, forms, bank accounts etc).
The current activity is risk free in the meaning that I won't have creditors to chase potential properties.
So it's great for me to attract more income and spend it back on properties to let.
Can anyone help please?
There may well be greater consequences than the simple answer to your question as there are relevant questions that you haven't asked.
Oh look, seems like you were given much the same advice 18 months ago:-
https://www.accountingweb.co.uk/any-answers/what-can-i-invest-in
The homework over the intervening period has not been altogether fruitful. (And, no, bfj, I am not being snide. Were I to go on and make some sneery comment about the OP having learned the acronym "SPV" in that period, then maybe I'd have to examine myself more. But though I thought it, I didn't say it.)
OP, SPV is a meaningless expression really. What a company can or can't do is governed by its constitution and external law. Your question as put is not something that should be answered in a forum about tax and accounts. Having said that, it would be extremely strange if your company could not, in principle, buy a property and very odd if it couldn't then let it out.
Assuming it is possible, is it sensible? Refer back to the previous thread for some comment on that. But above all refer back to your accountant. (You said you had one. Very sensible.)
Its an open forum, people will post what they want.
the advice you got above is actually spot on its just not what you want to hear as you don't appear to understand what you are doing, and are therefore not asking the right questions and going round in circles.
I spent £60 on a chiropractor on Tuesday. He stuck his thumb in a really painful place, and it was all done in 15 minutes and my problem is now resolved. I saw a different one 3 weeks ago who charged £50, spent an hour not doing very much, and the problem got worse. Its pays to pay a professional.
SPV - a [***] made up term that really doesn't mean anything and just confuses people.
Annoys me even more than people who get advice and advise mixed up.
Where's Captain Black when you need him to explain what an SPV is ?
https://www.ebay.co.uk/i/254473639248?chn=ps&norover=1&mkevt=1&mkrid=710...
A SPV stands for Special Purpose Vehicle, it is any vehicle used for a special(read particular) purpose by its owners, what that purpose is depends upon the will of said owners, it is nothing else, no special entity, no different form of Limited company or LLP etc, merely a vehicle used for a particular purpose.
In effect like my gardening jumper, it is a jumper , no different to other jumpers except I use it especially when gardening. (and other outdoor work)
I think you mean an SPJ.
SPJ is a different thing entirely.
https://gerryanderson.fandom.com/wiki/Spectrum_Passenger_Jet
Oh come ye back, Captain Scarlet, we need you now!Where's Captain Black when you need him to explain what an SPV is ?
https://www.ebay.co.uk/i/254473639248?chn=ps&norover=1&mkevt=1&mkrid=710...
It's a Mysteron where he went; my hero back then was Captain Scarlet not Captain Black. (I vaguely recall having a toy SPV at some point, but with all my toys ruthless parents tended to give them away as I grew up- if they had foreseen E Bay I would be raking in the money now)
Unbelievable.
You complain about answers being a waste of time and then proudly tell us that you found everything you needed on the internet.
Well, well done you !!
Unbelievable.
You talk as if an "SPV" is a specific legal form of something.
I also don't believe your findings. If you wanted to be helpful, as claimed, you'd post (links to) the source(s).
You might consider two or more beasties there ,not one, a propco and a manco, often a devco or two is also useful and a construct co can also be handy.
Some developer/investors stuff each property into its own single beastie, others (like us) run portfolio positions in some beasts and have single asset beasties floating about, but as said before, a SPV is merely any beastie used for a purpose; we these days have our highest property borrowing amount in a partnership (though we no longer do residential)