£5.3 million tax planning successMake Text Bigger
This week we obtained approval for a £5.3 million bridging facility to allow a client to withdraw their partnership capital up to base cost from their property rental business pre-incorporation.
The facility will transfer to the company on incorporation but the partners will retain the cash.
They will then loan the cash to the company to create a £5.3 million directors loan.
The company will then pay off the bridging finance.
The company will repay the Directors out of future company profits without any personal tax consequences for the Directors.
The finance was provided at a very competitive rate by a private funder and was secured against solicitors undertakings. This meant that property was not required as security to support the funding, which also kept costs down.
We’re happy, our clients are VERY happy.
It could be you!
The key criteria in regards to whether the above structure could also apply to you is:-
- You spend at least 20 hours a week running your property rental portfolio business
- You are not the sole owner of the business
- You haven’t borrowed more than the purchase price of your entire property portfolio
Please feel free to share this strategy on social media using the buttons below …
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.