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  • Tax

    SPV Ltd Co - Charge myself on existing props

    I have a number of buy to let’s in my own personal name. I self manage these and don’t use a letting agent.

    I have just set up a SPV limited company to buy a flat. I’m a director.

    ‘As well as holding the flat in the limited company could I get the rent from the properties in my own name paid to the limited company? The company would take 15% as a management fee and pay the rest to me.

    Essentially the Limited Company is acting as a letting agent.

    Is this above board? I.e tax avoidance not evasion.

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    You need to be careful on this issue

    HMRC could challenge you on this arrangement

    I was going to do the same thing So I arranged a Company in my wife's name to do the Management

    My advice to you would be Do some Other Management for other Landlords


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    Learn Change and Adapt ?????


    Hi all. managing other properties not owned by your self would be seen as a letting agent which would require redress scheme registration and the appropriate insurances to go with it.

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    You would be wise to consult a property accountant on how to establish it.

    As @DL says. What i've heard is HMRC do not like it if it does not look like it would at open market.
    Say charging a management fee of 90% of rent would be dodgy but a fair market management fee of 10% should be ok.

    You also have to look at the "end goal" you will be shifting money from personal name to LTD Company. That LTD Company will pay it's tax's on profits as well as paying Tax's on paying that money back down to you.
    So some spreadsheet maths to look at to see if it will be a benefit.

    Saj - is also right to point out regulation of letting agents. Not only membership of a redress scheme but appropriate PI insurance in addition to other things like agents (soon) not to be able to charge tenant fees for referencing.

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    Hi Adam

    I have set up a management company that only charges me 15 % of my total rent as management fees. Does my management company need to be registered with any scheme ?Thaanks

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