Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 3 weeks ago 35
I have heard you say on a number of occasions that incorporation is not a one size fits all solution and may not always be the answer to every individuals C24 tax problem. Whilst my question may seem to be only applicable to our own circumstances. I am sure it would also apply to many others who are in a similar position.
My wife and I, who are both in our early sixties, have been running our portfolio of sixty houses, which includes some HMO’s as our sole source of income for many years. 90% of the portfolio is owned in our joint names with 5 or 6 of the properties owned individually, collectively they are worth about 5.5 million, with borrowings of 1.9.
Our two adult sons also work with us on a full time basis for which obviously they are paid. We do not have a partnership UTR and currently all pay our own individual tax liabilities.
In the long term incorporation would seem to be our best way forward particularly with regards to reducing CGT and inheritance tax. In the meantime as our total net profits are in the region of £180,000, which could be split 4 ways, would there be an advantage for us to remain unincorporated for the time being. Is it possible for us to obtain a partnership UTR that would cover the four of us, making our eventual incorporation via a BICT smoother.
Also am I correct that as all of the income would be profits from investments would we all, including our sons, be allowed to make a saving by not having to pay class 4 NI on our income up until incorporation?
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