Incorporation Costs Less Than You Might ThinkMake Text Bigger
Given that incorporation can ‘wash out’ capital gains from properties into the company shares the equity is exchanged for upon transfer, and that Limited Companies are not affected by the Section 24 restrictions on finance cost relief, the costs often pale into insignificance in comparison to the savings made.
Clients of Property118 Limited and Cotswold Barristers are often pleasantly surprised to hear that the total cost of incorporation can be as little as £8,894.
Even landlords with more than 100 properties can pay as little as £17,193.
This is how we have broken down these costs:
- £400 Initial Consultation (inclusive of VAT)
- £0 Capital Gains Tax. This assumes that equity in the property portfolio has a higher value than the capital gain
- £0 Stamp Duty (LBTT in Scotland). Relief under schedule 15 FA2003 applies to partnerships at the point of incorporation
- £0 Mortgage valuation fees. There is no need to remortgage
- £0 Lenders fees. The transaction can be structured in a way to enable existing finance terms to be unaffected
Fees for incorporating using the Beneficial Interest Company Transfer structure are based on a scale as follows:-
- £6,995 + VAT up to 10 Properties
- £7,995 + VAT for 11-20 properties
- £8,995 + VAT for 21-30 properties
- £9,995 + VAT for 31-40 properties
- £10,995 + VAT for 41-50 properties
- £11,995 + VAT for 51-75 properties
- £12,995 + VAT for 76-100 properties
- £13,995 + VAT for 100 or more
A different pricing model applies in Scotland, because full conveyancing is necessary due to the law being slightly different.
The starting point is to book an initial consultation – please see below.Show Book A Tax Planning Consultation Form