9:55 AM, 12th October 2021, About 9 months ago
When setting up a Special Purpose Vehicle (SPV) for your Buy to Lets it is important to use the appropriate SIC Code. (A SIC code is a five-digit Standard Industrial Classification code. There are more than 600 individual SIC codes in the UK)
The following codes are normally accepted by lenders: 68100, 68201, 68202, 68209, 68310, 68320.
Whilst there are some companies that will accept trading companies, a lot won’t.
If existing landlords are considering transferring their properties into a limited company structure, it is highly recommended that they take professional tax advice from the team at Property118. Please see >> https://www.property118.com/tax/
The transfer is likely to incur stamp duty and capital gains tax liabilities if you do not seek advice to see if your business qualifies for section 162 incorporation relief. These costs can make it an unviable proposition if you do not do this research.
Advantages for Limited company portfolios
We will be happy to advise you as to the best mortgages available for properties held in individual names, partnerships, SPVs or existing ltd companies.
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