A client who has a newly formed LTD company currently owns 2 properties in which they rent out. The business activity of the LTD is mortgage brokering activities
They wish to make the LTD company the managing agent of both properties
Is there any tax benefit to the client if they do this? Any HMRC rules against this?
I assume the ltd co will handle rent payments and any expenses and in essence ''charge'' an amount to the Director the ''service''. Seems like a grey area unless there is specific rules on this?
I am not experienced in this particular field so I am not 100% on whether the Director can do this?
They are in the higher tax bracket so I assume the LTD will charge a % of the rent but then the Director take this out as dividends at lower tax bracket?
Any advice would be greatly appreciated!