Property legal title registered in personal name

Property legal title registered in personal name but expenses and income (rent) and the legal owner

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The client has recenlty approached for advise regarding the property inocme treatment and claim of mortgage interest through the limited company. The property title is registtered in client's personal name but client is insistent that they trade through ltd company and insistent that rental income and expenses belongs to his ltd company. Please help if there is any possibility for the income to be taxed through Limited Company rather than hsi personal.   

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By Paul Crowley
04th Jan 2021 18:50

Fact find first.
Who owns the property?
Who does the lender lend to?

Why does client think the company owns the property?

Is this really about loan interest restriction on the higher rate taxed client?

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Replying to Paul Crowley:
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By [email protected]
04th Jan 2021 18:57

Hi Paul,
Thank you for your response.

Who owns the property? - Client owns the property in his personal name
Who does the lender lend to? - Loan is on his personal name

Why does client think the company owns the property? - He classify himself as professional landlord and running the business through limited co.

Is this really about loan interest restriction on the higher rate taxed client? - yes possibly to avoid loan interest restriction and pay salary to his partner/children through ltd company structure.

Thanks

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Replying to [email protected]:
Psycho
By Wilson Philips
04th Jan 2021 19:24

Paul missed one question - whose name (besides the tenant) is on the lease?

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Replying to Wilson Philips:
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By [email protected]
04th Jan 2021 20:42

Hi Wilson,
Thank you for stepping in to help.
I think standard tenancy agreement is in place between the landlord (Ltd Co.) and the tenant.

Regards
Syed

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