Partnership Match Making For Landlords

Partnership Match Making For Landlords

10:29 AM, 1st August 2017, About 4 years ago 6

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Are you looking for another landlord to form a partnership with for tax planning purposes?

We regularly speak to landlords who would be far better off from a tax perspective by incorporating their business. However, they are single, have less than 10 properties and don’t know who to go into partnership with. Therefore, HMRC do not recognise them as a business for the purpose of claiming incorporation relief to roll capital gains into shares at the point of incorporation and they do not qualify for the special treatment afforded to partnerships for SDLT when they incorporate either.

Naturally, one of the first things we ask people who are in this position is whether they have any close friends or relatives who are in the same predicament.

Unfortunately, many do not!

However, if two or more landlords form a business partnership and run their property portfolio as a business they may well qualify for both incorporation relief and the special SDLT treatment for partnerships after an initial three year period. They could then ‘wash-out’ their capital gains to that point and run their business in a lower tax environment which isn’t affected by restrictions on finance cost relief.

Does this mean there is a business opportunity for matchmaking? When I mentioned this idea to our Hon. Legal Counsel he jokingly suggested “Tinder-For Landlords”.

So, how big is this opportunity and how could Property118 go about facilitating such an introduction service?

That’s about as far as we have got with the concept so we are looking for ideas.

If you have any suggestions please post them in the comments section below.

Similarly, if you are a landlord looking for a partner, please feel free to use the comments section to tell other Property118 members a bit about yourself and if anybody responds showing an interest we will do our best to introduce you to each other.

Thanks in advance.

All the best

Mark Alexander – founder of Property118 “The Landlords Union”

PS – also see the related article links to the top right 

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Comments

by Brian Sager

0:53 AM, 4th August 2017, About 4 years ago

Being single with no partner with 18 properties in the Blackpool area I am looking for a similar partner where we could incorporate to save loan interest and capital gains tax. Look forward to anyone who may like to discuss if viable?

by Cave Man

18:07 PM, 5th August 2017, About 4 years ago

How do I contact you Brian?

by Mark Alexander

18:25 PM, 5th August 2017, About 4 years ago

Reply to the comment left by Cave Man at 05/08/2017 - 18:07Tell us a bit about yourself and if Brian agrees I will send an email to you both to introduce you.

You might not be a perfect match for Brian but many others are reading this who might want to partner with you.

As the founder of this website I have access to all member details including email and IP addresses.

by Cave Man

18:36 PM, 5th August 2017, About 4 years ago

I have a smaller porfolio (3 properties) that are owned directly on capital repayment mortgages. I have low gearing 47%.

I'm looking to expand and exploring options to incorporate. I am currently looking to add a 4th residential property to the portfolio and separately looking at purchasing a commercial property via a SIPP.

by Mark Alexander

18:50 PM, 5th August 2017, About 4 years ago

Reply to the comment left by Cave Man at 05/08/2017 - 18:36Thank you, where are you based? It doesn't say on your member profile

by Cave Man

17:37 PM, 6th August 2017, About 4 years ago

Reply to the comment left by Mark Alexander at 05/08/2017 - 18:50York.


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