Buying a buy to let through a limited company

Buying a buy to let through a limited company

11:25 AM, 24th August 2015, About 6 years ago 33

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In the light of recent budget changes, until we see any response from government with respect to concessions they may make to individuals purchasing buy to let in their own names, buying through a limited company now seems to the sensible way to proceed with new investments. limited company

This thread is for tips and questions regarding incorporating and finding finance for buy to lets via a limited company.

James



Comments

by Jon Pipllman

20:09 PM, 20th October 2015, About 6 years ago

>Alex Piggott

Ask your advisor about getting the money out of the company to pay the mortgages.

by Tom williams

9:53 AM, 25th October 2015, About 6 years ago

Reply to the comment left by "Mark Alexander" at "25/08/2015 - 13:22":

Hi Mark

Can I please ask you to elaborate on your comment that "if you plan to reinvest...then it makes a lot of sense to pay the lower tax on retained profits".

I am thinking of reinvesting through my Limited Company in a second property. This company has already made an unrealised gain of 100k on its 1st investment property. An opportunity now exists to sell that property and reinvest in a new property.

I understand that if I sell but don't reinvest then the company will need to pay Corporation tax this year on the realised gain,but I am wondering whether this dan be deferred if I reinvest? Is this what you mean?

by Mark Alexander

12:51 PM, 25th October 2015, About 6 years ago

Reply to the comment left by "Tom williams" at "25/10/2015 - 09:53":

Hi Tom

I was referring to the reinvestment of profits from income. In a company these are currently taxes at 20% which will reduce to 18% by 2020, whereas you could pay as much as 45% tax on profits from income in your own name.

Always consult a qualified and insured accountant for tax advice.
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