Transfer property into a limited company

Is it time to transfer your properties into a limited company?

Are you looking to incorporate your property portfolio to reduce property tax?

Start the incorporation process today, save tax tomorrow. Tell us about your property portfolio and we will be in contact with you to provide some solutions.

Increasing property tax on UK landlords

From 6 April 2017, Section 24 of the Finance Act means that mortgage interest relief no longer benefits from full tax relief. This means that most UK landlords will pay more income tax on their buy to let properties. This is because you cannot deduct mortgage interest costs from your property income to calculate income tax.

Why move properties into a limited company?

icon

Income tax savings

Section 24 means that most of our high-rate taxpaying clients are paying closer to 60% property tax because they can no longer offset mortgage interest against their income. You can offset all mortgage interest costs in a limited company.

icon

More income tax savings

Corporation tax is 19% compared to income tax rates of 20% basic rate, 40% high rate and 45% for additional rate. Do not forget that income tax rates are actually higher than this because of S24

icon

Even more income tax savings

Using a limited company and alphabet shares means that you can allocate tax free dividends to adult children, spouses and your own parents. There are ways that you can extract up to £20,000 tax free cash out of your company

How property incorporation helps you save tax

Example 1:

If James had the property in a limited company the corporation tax rate on the £15,000 profit would be 19%. Corporation tax liability would be £2,850 resulting in a significant tax saving of £4,150 per year.

The corporation tax rate on the £15,000 profit, if James had the property in a limited company, would be 19%. The corporation tax liability would be £2,850. This is a significant tax saving of £4,150 per year.

Example 2:

A client had over £3million worth in his property portfolio, and it was identified that he had a terminal disease. We determined that £1.6m IHT would have to be paid to HMRC.

How on earth do you plan to pay £1.6m?

Thankfully, we identified a lot of simple, legal, and practical plans to reduce the inheritance tax liability from £1.6m to £400,000. It is still a lot of money to pay HMRC, but it was worth hosting the call to save £1.2m.

The use of freezer shares and growth shares mitigates future growth in the hands of parents and immediately passes onto children, thus avoiding the IHT trap

 

Is it difficult to incorporate your property portfolio?

1 – The first thing you should do is read all the material we have provided to you on this page.

2 – Complete the online form or the form below

3 – We will come back to you with some general guidance. We will provide you with a consultation option to review your income tax situation.

4 – We will work together to identify the very best tax structure in a tax consultation.

Enquire about our ongoing services

Book a call to discuss our property accountancy services

Get in touch

Book a paid for tax consultation

Use the code “Art20” to get 20% discount

Book now

Book a call to see how we can help you.

Consultation options.

We offer the two following options for initial consultations.

CALL OPTION ONE

Our Ongoing Accountancy Services

Fixed price irrespective of how many properties you have

We charge on a fixed monthly fee

  • - Accounts submitted to HMRC & Companies House

  • - 60 minute onboarding tax call

  • - Unlimited 30 minute tax calls

  • - An holistic review of your tax structure and future plans

  • - Annual tax return review to discuss future tax plans

Our Monthly Accountancy Services

CALL OPTION TWO

Tax Consultation + Tax Report + Video Recording

(Free for clients)

Want tax advice right now? Book today

  • - Upload your questions in advance

  • - Our Tax Advisors collectively discuss your questions

  • - A qualified tax advisors discuss the very best solution with you

  • - A tax report & meeting recording is sent within 24 hours

  • - Clarification questions are answered via email

Tax call from £124.95

Booking your appointment.