Evicting vulnerable tenant in hospital – Landlord Action response9:55 AM, 3rd July 2019
About 2 weeks ago 69
I currently self manage my 15 buy to let properties in the Greater London region. I want to legitimately reduce my property income so was thinking of creating a property management company whereby I transfer 6% of the annual rent as a service fee to the property management company. I am happy to create monthly invoices etc to show this as being an arms length transaction. I do not need the money so am happy to leave it sitting in the property management company (or maybe withdraw c. £5k a year as dividends).
Have any of the other readers done something similar? My only concern is that HMRC may challenge this arrangement given I am only managing my own properties and not anyone else’s. I also make a lot more money from my full time employment income than I do from property income. Transferring property to my wife is not an option as she is in the same situation (multi property owner who makes more from employment than from property).
I would be open to suggestions
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