13:22 PM, 11th December 2017, About 5 years ago
Thanks to a joint marketing campaign with Cotswold Barristers and AccountingWEB we now have a database of 747 accountants (and growing) who have taken the time and trouble to download a PDF explaining the BICT incorporation structure and the associated viability analysis software. Our plans are to share further proven structures with these accountants over the coming months in order to build powerful strategic alliances for the benefit of all parties.
Some accountants have yet to consider solutions to the restrictions on finance cost relief affecting private landlords under Section 24 of The Finance (No.2) Act 2015, let alone to make recommendations to their clients. Many other accountants are oblivious to structures such as BICT and are too stuck in their ways to explore new solutions to new issues. For this reason, many landlords are beginning to realise their accountants are nothing more than glorified book-keepers and are looking to switch to forward thinking accountancy practices for ongoing advice.
The benefit of building this database is that we are now able to refer our tax-planning clients to accountants in their area who are equally forward thinking to ourselves.Show Book a Tax Planning Consultation
Property118 Limited has just released a new spreadsheet for landlords and their accountants to download free of charge.
The spreadsheet is incredibly easy to use and produces instant results.
Find out whether it might be possible to restructure your business so that you only pay corporation tax on a significant amount of your future your rental profits, and without any restrictions on finance cost relief either. The corporation tax rate is currently 19% and is scheduled to fall to 18% next year and 17% the year after.
This spreadsheet will calculate the maximum amount of funds you will be able to withdraw from your business without paying any further tax as a result of using this particular restructuring method. It will also provide you with a quote for implementing the restructure.
If the structure is not applicable to you the spreadsheet will explain why and make further suggestions.
We obtained approval for a £5.3 million bridging facility to allow our clients to withdraw their partnership capital up to base cost from their property rental business pre-incorporation.
The facility was novated to the company on incorporation, but the partners retained the cash.
Post incorporation they loaned the cash raised to their company to create a £5.3 million directors loan.
The company then paid off 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.
The key criteria in regards to whether the above structure could also apply to you is:-
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