I have a potential new client coming to see me soon who is wanting some more information on buying a Property through a Limited Company. There will be 2 of them (brother and sister) buying the property - I assume with a mortgage - and the sister is planning on living there. They are also planning on renting out some of the spare bedrooms.
This is a wholly new scenario for me so was wondering if anyone had any experience of something similar?
Obviously I can tell them about the 'Rent a Room' scheme as well to give them some food for thought.
Thanks all!
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The sister living there is an issue (BIK) as of course is rent a room (no relief will be available as does not operate for companies) , perhaps revisit why a company is the vehicle of choice given what they want to do. (Never been particularly keen on companies anyway for property as eventually shareholders want all profits extracted)
Brilliant - thank you for the reply. I'd not even considered the BIK factor at this stage but I imagine it'll play a big part in their decision.
Like you, i'm not keen on Companies buying property but will see what they say.
Thanks again!
Completely daft idea
Company pays capital gains tax as no PPR and no annual allowance
Are they daft enough to believe what they see on You tube?
Companies can be appropriate vehicles for property investment but are generally a terrible idea for the house you live in. That's a classic indication of a scheme proposed by someone who doesn't even realise quite how much they don't know about tax and are focusing on one aspect of the tax situation with no knowledge or consideration of everything else involved.