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  • Tax

    I agree with Tony about ltd co tax structures

    They are both 2 year fixed.

    Everyone on here is taking about how competitive ltd company mortgages are, im sorry I can’t find them. I am buying another at the moment so I called my broker to see if the rates are better but they are just as rubbish.

    Not paying 3.6% if I can get it for under 2%.

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    3.6% for a 2 year fix?!? thats crazy.

    I obviously don't know your circumstances but I am getting a 5 year fix at the moment for 3.49% with a 1% arrangement fee (added to loan) and £150 valuation fee

    Has your broker tried Paragon, LendInvest, SBI, Landbay - all these are offering less than 3.75% on 5 year fixes

    It might be a good idea to get quotes from other brokers as there are definitely better deals on the market!


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    Yes, you a probably right, I have noticed my broker steering me towards lenders that offer him higher fees and he has made his fair share of mistakes. It’s time to move on.

    Its really hard to find good people to work with who also have integrity. 

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    Yes, Personal name BTLs still best! Don't listen to any accountants offering incorporation services Smile

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    4.4% seems quite high for Ltd Co borrowing. Who is the lender? what kind of mortgage product is it?

    I have a mixture of lenders in my portfolio. I'm on a 5 year fixed with the majority of my portfolio, but the rates I got were 3.65% (Paragon), 3.59% (State Bank of India) and now 3.49% (LendInvest).

    The arrangement fees were not that high. From memory ranging between 0.5% and 1.25%

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    I agree with both you and Tony. The Landlord Shuffle has its associated expenses which you have identified and mitigated, you are also planning for later life, not immediate income. Tony, quite correctly, explains how this won't work for many landlords, although he does tend to imply it affects all landlords.

    I've listened carefully to you both, and taken further advice, and my best solution was to incorporate, but my criteria were completely different.

    I think you are both great educators, but as Vanessa points out tax advice should be bespoke. I would also add to that legal advice should be bespoke and this may result in a recommendation to incorporate. I also believe that when taking advice we should be informed prior to asking. Any shared opinions, experiences and facts make this a lot easier.

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    Why not form a partnership with someone with very low income and then transfer your income to them so that no partner falls into the higher rate tax band.

    As long as each partner contributes some capital the income can be distributed in any percentage that you like.

    Each partner needs to so some work in the partnership to qualify.

    Then 3 years later consider incorporating as no cgt and stamp duty may be payable

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    There's nothing wrong with that approach BIll, but my decision was based on advice regarding legal ownership rather than taxation, hence my comment regarding legal advice as well as tax advice.

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    He says in the video when you sell a property within a limited company you pay corporation tax and CGT... is this accurate? i thought Ltd companies pay CT not CGT

    He’s also really talking about selling existing properties to a ltd company where as an additional rate tax payer buying new properties as it stands now ltd company is a no brainier if thar changes I willl buy personally again

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    i thought Ltd companies pay CT not CGT

    Exactly!

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