Start a partnership or limited company?

by Readers Question

9:17 AM, 2nd April 2019
About 2 years ago

Start a partnership or limited company?

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Start a partnership or limited company?

Hi I am looking for guidance. I have a tenanted rental property with no mortgage and my main residence is also unencumbered.

I can mortgage and raise capital against both properties and also have £250,000 to invest.

The question is should I go into a partnership with my wife or set up a SPV limited company and loan the money to the company.

I am employed my wage is £40,000 my wife is main foster parent and earns £ 22,000 which is tax free.

Many thanks

Shahid


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Neil Patterson

9:22 AM, 2nd April 2019
About 2 years ago

Hi Shahid,

Any kind of qualified advice can only really be given if ALL the fact are available so it will depend on:

Will the income generated push you both into high rate tax payers?
Do you have children, what are their ages and are they working and what is their tax status?
What are your objectives regarding income, capital growth, IHT etc?

There are also 3 types of partnership, ordinary partnership, mixed partnership and LLP.

Please see our tax planning page for reference >> https://www.property118.com/tax/


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