Difficulties remortgaging due to higher interest rates affecting lenders affordability criteria

I agree that S162 is a way of shifting property into a corporate structure, but in the end its just kicking the can down the road, the government will get its tax one way or another.

Reply to the comment left by GlanACC at 24/05/2023 - 12:52
Not necessarily.

If you never sell personally owned investment properties the CGT dies with you.

The same applies to company shares.

Reply to the comment left by Mark Alexander - Founder of Property118 at 24/05/2023 - 13:52
Yes, thats true. But it could be an issue when I need the money to buy my Ferrari

Reply to the comment left by GlanACC at 24/05/2023 - 15:17
Talk to me when you do. It’s never been a problem for me 😉

Reply to the comment left by Mark Alexander - Founder of Property118 at 24/05/2023 - 15:23
Yup, will do. still trying to decide what to do with my other non-property business (IE whether son wants it or I will sell it), then will look at what to do with the remaining 6 properties I have

Reply to the comment left by Mark Alexander - Founder of Property118 at 24/05/2023 - 13:52
Hi
I am really interested in your bespoke advice - to please you, I shall not call it a legal avoidance scheme.
"If you never sell personally owned investment properties the CGT dies with you.
The same applies to company shares."
What you have said is correct, but you have mentioned death.
To most people, death means IHT, and not CGT.
If you do not gift or sell your shares during your lifetime, the shares and any balance on Directors' Loan account form part of your free estate and liable to IHT.
You have to advise clearly the advantages/disadvantages of becoming non-resident to avoid these hefty liabilities, which are postponed.
If you die a pauper, what happens if your free estate has the valuable shares and the Directors Loan Account but the estate has no money to pay the IHT? Is that a plausible way to plan for the future?

Excellent points and great questions which are answered generally in the page linked below

https://www.property118.com/what-is-a-family-investment-company/

I observed Mark and Mark, and also another tax mitigation firm, at the recent Excel exhibition and may now be ready to act on the £400 fact find video consultation (refundable if required) in which your investment in Prop118's professional fees are apparently detailed.
However, when you are a very small concern like us with only a few properties in an off the shelf Ltd.company, plus two in personal names, I do think it's reasonable to be given a broad sense in the marketing of FICs/Smart Companies of the realms of what it might cost the company as a cashflow commitment, remembering that assets are solids and cash is a liquid which can quickly run down the drain.
I am fully aware that this is a one-off exercise to be structured permanently, but I think you perhaps ought to have a bit of scale about you to justify it.
For example, let's say all costs to get it structured and operational are £14,000 (fourteen thousand pounds). That would equate to my buy-to-let turnover before costs for the properties in the Ltd. Company.
Perhaps I'll fill in the form today and see how the initial phone call goes, and then review which of the two organisations to employ, if either yet, or at all.
Perhaps as Directors, shareholders and spouses we'll mitigate part of the concerns by increasing our whole of life cover very significantly and pay most of our children's premiums for them to neutralise IHT. But then there's the rest of it........

Reply to the comment left by Accommod8 at 31/05/2023 - 10:59
If tax planning doesn't save you considerably more than it will save you there is little point in recommending it to you. It is extremely rare for that to be the case, which is why we can afford to do the work AND offer the guarantee of total satisfaction or a full refund.

It is quite rare for comprehensive tax planning and implementation to cost less than £20,000 or for the savings over your lifetime to be at least 10 times that number.

Reply to the comment left by Mark Alexander - Founder of Property118 at 24/05/2023 - 13:52
Hi
I just cannot understand “ The same applies to company shares.”
When you incorporate, your CGT as at the date of incorporation Is replaced by shares, which have a value.
On death, the value of these shares have to be declared for IHT, and IHT has to be paid - assuming have sufficient value.
If you do not pay CGT during your lifetime, then IHT is payable on your death.
Some tax on your personal CGT cannot be avoided.