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  • Tax

    Ltd company - bigger bomb than Section 24?

    My question is why would you want to sell?  Surely the income from that portfolio would far outstrip what you could get from an annuity, plus you would have something to pass on to your heirs.   As you age you simply get more and more of the management done for you.

    I think many in this game have death as their exit strategy and so perhaps a company will work for them.  Just a thought.

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    I agree death is an excellent exit strategy . Its def on my radar . CGT dies with me

    And yes  just reduce the management burden with age  and take a small hit on your income

    But for some older folk they still feel despite the benefits of holding they just want to clear their slate

    There is still a mental burden with ownership even if managed for you

    Some bear that mental burden much better than others

    Old folk can get preoccupied about setting their house in order before they pop their clogs

    Heirs often  just want to know what the cash balance is when the estate is finalised

    They may not want the burden of ownership of an asset class they don`t understand

    If you have earn`t far more than you will ever need then selling can be an attractive option

    If at 30 you set a goal of say 1 mil equity but  make 3 mil by  70 losing a mil in taxes is ok

    But if the income is proportionally more significant  than the equity then yes holding maybe  better

    DL though intimated no CGT relief was a problem within a company . She is kinda right

    But the richer you get the less beneficial  impact the personal CGT relief proportionally has on you

    If you make a 25K gain then  £23,400  relief pa  yes has more significance

    But if you make 1 mil gain that £23,400  relief is relatively insignificant

    Ideally sell one a year to maximise but a clean sweep might be a price worth paying

    So if you decide one day to sell up at 70 you just take the hit and take your 720K into the sunset

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    Jonathan Clarke. http://www.buytoletmk.com

    I know I will die as a landlord

    and your right CGT is no longer a problem

    IHT is of course but this is where debt is a good thing

    the more debt less IHT

    as long as your passing on a good yeild

    happy days

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Very encouraging and positive! Thanks for sharing.

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    We've been saying this since 2015 - buying through a limited company is the biggest mistake a BTL landlord will ever make.

    Overall, we've looked at almost 5,000 landlords, and have yet to find a single one for whom incorporating makes any kind of sense whatsoever.

    DL is spot on - in that comes April 6th 2021 or shorty thereafter, the chancellor of the day will almost certainty increase corporation tax for property companies in the same way that George Osborne hiked CGT, and the trap will have been well and truly sprung.

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    Tony Gimple

    Founding Director

    Less Tax For Landlords

    0203 735 2940


    Thank you it’s good to know a tax professional agrees with my opinion

    I know in my own case I have formed a company but my reason is for succession and providing a pension for myself and my wife

    But if I had not been of older years I would not go near a company

    This is another time bomb ready to go off just like S24 !

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    And Interest only mortgages DL

    Section 24, Limited Companies and Interest only mortgages.

    Plus wait until the interest rates begin creeping up, lots of ticking time bombs DL

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    We've been saying this since 2015 - buying through a limited company is the biggest mistake a BTL landlord will ever make.

    Amd you are still wrong. There probably are circumstances where it is a mistake. , but there certainly are also circumstances where it is the right thing to do.

    Also George Osborne did not raise CGT.

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