Hybrid Tax Structure – Landlords BEWARE!

Hybrid Tax Structure – Landlords BEWARE!

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The hybrid structure is nothing new. In simple terms it’s a partnership, whereby one or more of the partners is a Limited Company, plus in some instances an offshore pension trust structure such as a QNUPS.

However, the way the structure is currently being touted by one particular firm at all the big landlord shows as a ‘one-size-fits-all’ solution to the issues associated with finance cost relief could very easily result in people falling foul of HMRC’s “Transfer of Income Streams” legislation under The Finance Act 2009 schedule 25 – please see the link below.

http://www.legislation.gov.uk/ukpga/2009/10/schedule/25

To summarise the legislation; if you transfer part or all of an income stream without also proportionately transferring the underlying business assets any tax advantage is negated.

Hopefully, this tutorial will help to alert the industry and deter those who may have otherwise been enticed by those profiteering by promoting high risk schemes. Please share this article via Facebook, email, word of mouth, other social media networks and in any other way you can think of.

You may also be interested in THIS RELATED ARTICLE

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Consultations include new client compliance checks, fact find via email with complimentary software, expert analysis, a detailed written report and recommendations and a recorded video conference with your Property118 Consultant and our Hon. Legal Counsel, which your existing advisers are welcome to participate in. All consultations are confidential and you will be provided with a copy of the recording of the video conference. We GUARANTEE total satisfaction or a full refund.
  • Please provide an overview of your circumstances and what you are looking to achieve.

Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).

There will never be an optimal ‘one-size-fits-all’ business structure for tax purposes.



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