Rental income and stamp duty or limited company

by Readers Question

8:18 AM, 26th February 2018
About 8 months ago

Rental income and stamp duty or limited company

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Rental income and stamp duty or limited company

I have one property rented out since I down graded to a small flat in August 2016 only. I am thinking of opening limited company as people say that is more tax sufficient, and asset is owned by the company rather than myself which can paid for my care in old age.

Can anyone guide me if that is an option to go with or is it more complicated and or expensive then I might think?

Thank you for any help.

Angie



Comments

Neil Patterson

10:01 AM, 26th February 2018
About 8 months ago

Hi Angie,

It is great that more landlords are now aware of section 24 and tax issues as it is surprising how this has slipped under many people's radar, but tax returns are now bringing the issues to everyone's attention.

The good news is you can consider options to help mitigate S24. However, all the factors, figures, facts and circumstances need to be considered together and never in isolation.

Please see our tax planning page and do as much research as you can >> https://www.property118.com/tax/

You need to consider CGT, Stamp, current tax position, future tax position, costs, accountancy, future plans etc etc. There is never one size fits all and without knowing I would not like to guess.

Dave Driver

13:39 PM, 26th February 2018
About 8 months ago

It can be more tax EFFICIENT, if you are affected or likely to be affected by S24. But running a company is likely to cost you £2k+ per year and introduce more admin. And transferring an existing privately held property to a company will incur fees, stamp duty, perhaps CGT too. You could be a lot worse off. Consult an expert.


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