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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.
We await with bated breath!
I am not sure he will want to upset Big Business
But anything could happen with this Govt.
What this article omits to mention is that for most taxpayers by incorporating the tax cost when selling property is substantially higher than owning the property personally.
Nigel Reynolds FCCA CMgr FCMI
Property Tax Specialist
Reynolds and Co
you are 100% correct
in a Company a Landlord will pay more Tax when the company pays a dividend
or as a salary
and also when Landlords are selling there own property the Govt is receiving CGT and Stamp Duty too
Company's only work well If you don't want income and your investing profits in a pension
or for succession after death
Of course some of us would have a huge increase in income tax if we did not alter out plans for BTL investments
Or when the company is small enough that the various allowances cover everything you wish to draw out. The 40k for a pension contribution being the largest such allowance.
" What this article omits to mention is that for most taxpayers by incorporating the tax cost when selling property is substantially higher than owning the property personally. "
I guess you are making the presumption that the owners are pulling out the profits from selling a company and being taxed again - which is not always the case. It could be re-invested, pay down other BTLs and other ways i read about one landlord even loaning the money to themself.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
In my experience very few investors sell a property in a limited company and reinvest it. Most want to take a big chunk out to pay for a luxury such as a trip of a lifetime. As for loaning the money to yourself gives rise to a charge under the loans to Participators legislation in s455 and 464a Corporations Taxes Act 2010 as well as being taxed as a benefit in kind. So I wouldn't recommend that as an option.
I guess it all depends on the individual circumstances, approach and desire to minimise tax now or in the future
Simon Misiewicz | Business Development Manager
Telephone: 0115 939 4606
Yes it does but all too often Tax Advisers fail to layout all the options, costs and most especially the downsides of the advice they are giving.
Fair comment. We can all say that about any industry to be fair. I tis not the industry rather than the individual that gives advice in their respective profession.