Landlord Incorporation Checklist

Landlord Incorporation Checklist

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If you’re contemplating a transfer of your rental property business into a Limited Company, this checklist will prove extremely useful for you.

  1. Does the operation of your rental property business occupy at least 20 hours a week of time, including that of agents and contractors whose services you engage? If so, you may well be able to claim incorporation relief, which rolls the capital gains in your properties into shares in the company you are transferring the business into.
  2. Do you share ownership, income, risk and expenses with at least one other person? If so, you may well be a partnership by de-facto, whether you are registered as such with HMRC or not. When a company takes over the whole business of a partnership a form of Stamp Duty relief applies, often meaning the company pays no Stamp Duty at all on the properties transferred into it.
  3. Are the total liabilities of your business lower than the acquisition costs of your properties? If they are, then a pre-and-post incorporation Capital Account Restructure could facilitate the subsequent withdrawal of funds from the company without further personal tax consequences, e.g. net proceeds of property sales, retained profits or net funds resulting from remortgaging.
  4. Decide whether or not you wish to refinance or retain your existing mortgage terms. We can assist you with either scenario.

Reasons to consider transferring your rental property business into a Limited Company structure include the following:-

  • The ability to offset finance costs against rental income as a legitimate business expense
  • Limited Liability
  • More opportunities for inheritance tax planning
  • The ability to raise capital though share sales and new shares issues
  • Easier access to funding
  • Retain profits for reinvestment, paying down debt or simply to accumulate cash at significatly lower tax rates than the higher rates of personal taxation

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

Professional advice from a qualified Barrister-At-Law, insured up to £2,500,000 per claim.

Show Form To Book A Tax Planning Consultation
Consultations include new client compliance checks, fact find via email with complimentary software, expert analysis, a detailed written report and recommendations and a 30 minute Q&A session via Skype or telephone. We GUARANTEE total satisfaction or a full refund.
  • Please provide an overview of your circumstances and what you are looking to achieve.

There will never be an optimal ‘one-size-fits-all’ business structure for tax purposes. The presentation below provides a useful overview of some of the options you might like to discuss with us.



Landlord Tax Planning Webinar LLP’s

Landlord Tax Planning Webinar LLP’s

Partnership taxation and associated rules

Partnership taxation and associated rules

Landlord Tax Planning Analysis Software

Landlord Tax Planning Analysis Software

Guide for landlords on forming an LLP for property investment

Guide for landlords on forming an LLP for property investment

Beneficial Interest Company Transfer Structure Explained

Beneficial Interest Company Transfer Structure Explained

Substantial Incorporation Strategy Scotland “SISS”

Substantial Incorporation Strategy Scotland “SISS”

Tax Planning – What on earth are you waiting for?

Tax Planning – What on earth are you waiting for?

Capital Account Restructure – Case Study

Capital Account Restructure – Case Study

Guide To Forming A Property Partnership

Guide To Forming A Property Partnership

HMRC Internal Manuals ‘Landlord Incorporation’

HMRC Internal Manuals ‘Landlord Incorporation’

IHT Legacy Planning For Landlords – CASE STUDY

IHT Legacy Planning For Landlords – CASE STUDY

Landlord Tax Planning Presentation in PowerPoint and PDF

Landlord Tax Planning Presentation in PowerPoint and PDF

Mixed Partnerships For Tax Planning Purposes

Mixed Partnerships For Tax Planning Purposes

Freezer Shares – an IHT planning structure for owners of Property Companies

Freezer Shares – an IHT planning structure for owners of Property Companies

Stamp Duty when transferring the ‘whole business’ of a Partnership into a Limited Company

Stamp Duty when transferring the ‘whole business’ of a Partnership into a Limited Company

Hallmarks of a property rental BUSINESS

Hallmarks of a property rental BUSINESS

Tax Planning With Alex Caravello

Tax Planning With Alex Caravello

Hybrid Tax Structure – Landlords BEWARE!

Hybrid Tax Structure – Landlords BEWARE!