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  • Tax

    Private vs Ltd Company for new Landlord

    as a ball park fig It would have cost me around £1500 ish less than a company purchase

    Your Legal  bills are higher

    and you have to pay to have Independence advice about your responsibility of being a Guarantor

    For me to even think of buying a property It has to be a peach of a deal

    I look for 8% yield If I cant find it I just wont buy



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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.

    Gotcha! I am aiming for 7.5%+ yields currently.

    So assuming 80K purchase, 8% yield and that one is paying higher rate income tax... would it be fair to say that the extra you save in tax (assuming you are keeping the profit in the company) pays off the extra costs incurred after around 3 years?

    Also, are these costs fixed (apart from Stamp Duty)? So the higher the value of the property you are buying, the smaller the impact of these costs?

    Sorry for all the questions, this is super useful information. Appreciate it!

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    I’m an accidental landlord after moving abroad but recently started buying property. I paid for advice and essentially was told to keep things privately owned until I was going into the higher tax bracket - there was a lot more to it but that’s it in a sentence! Of course my situation maybe different as I don’t work in UK.
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    I'm a BRT and cash buyer.
    Advice from solicitor - don't buy in own name
    Advice from accountant - don't buy in a limited company
    Advice from property tax expert - buy in a limited company but do it in a specific way.

    Not only will you need bespoke advice, you will also need to understand the options and opportunities available.
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    This article is a useful read - its by our tax specialist partner, Rental Income Tax Advisors, who are also the preferred tax partner of the Residential Landlords Association:

    The BIG tax issue: Should I incorporate?

    You can find out more and contact RITA by clicking their banner at the top of this thread.

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    I posted on this very subject a working example yesterday

    have a look here

    https://www.propertytribes.com/showthread...lid=396849

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