Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
In our 20+ years as landlords we have engaged three sets of accountancy firms.
Our family business provides rental accommodation for nearly 300 people and we have always operated through a Limited Company structure.
A few weeks ago I watched a YouTube video in which Mark Alexander was interviewed about Smart Property Company structures, following which I immediately found Property118 an booked a tax consultation. I am so delighted I did, what an eye opener!
None of my accountants had ever mentioned the benefits of having a variety of share classifications. Our shares are owned equally between all family Members and all shares have exactly the same rights, despite the fact that we all have incomes from a variety of other sources and pay tax at different rates. Having watched the video, I now realise that all three accountancy firms we have worked with over the years have let us down badly.
No advice has been given to us by any of our Accountants in regards to inheritance tax planning and when we have previously declared dividends we have all paid tax at our marginal rates. Two sayings spring to mind; 1) we don’t know what we don’t know and 2) we are where we are.
Our Consultation with Property118 focused on the optimal share ownership structure for our business. I will not go into the specific detail of what was discussed and agreed because that is private, confidential and only applies to my family business, save to say the modified share structure of our property investment company will save us several thousands of pounds every year in income tax and potentially millions in IHT.
The author of this testimonial requested to remain anonymous. The links within this article have been added by Property118. If you would like to discuss the ownership structure of your own property rental business with a member of the Property118 tax team, please complete the enquiry form below.
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