UK Landlord Forum / Life

I'm just wondering about the differences in buying a BTL in a UK company name or in own name.

I'd imaging mortgage options would be restricted and costs probably higher but does having a limited company have any advantages? Perhaps being able to offset more costs or it's a more tax efficient structure?

hi There.

You really need to speak with an accountant as its a highly complex area littered with pitfalls just waiting to trip you up tax wise!

I have a limited company an sole trader business. If I buy to refurb and then sell on it goes in the limited company but if I buy to let then it in my name as the taxation is better however HMRC are always trying to close loopholes. remember is tax avoidance and not tax evasion.

I dont know your circumstances but as a normal rate tax payer it's better to go privately as opposed to Ltd company due to the corporation tax percentages.

I have just had a 3 grand tax bill for the dubious privillage of transferring from my limited company into my personal name!! B*****ds!!!

Can't exagerate how important it is to get professional advice!!

Hope this helps

Jools

Completely agree with Jools. That's why I didn't want to reply to this thread because I'm not qualified- you need professional advise. And a lot of the times, the amount of tax breaks you get really depends on how good your accountant is.

One thing I will say is, I wouldn't just go to a general accountant, I would go to someone that specialises in this field.

Thanks. I understand that it's a specialist topic but I just wanted to get a general consensus on the subject. I've been recommended an accountant so I just need to speak with him and see how I feel about using his services.

Hi Landlord,

I was wondering whether you or anyone, could recommend a good accountant to help set-up a limited company to use for BtL?

The internet is the last place I would like to rely on.

G

Whereabouts are you? I reckon, even in this day and age, you're best going with a local firm where you can meet face to face if need be.

It will depend on a number of factors surrounding the particular circumstance of the buyer such as how long the properties will be owned for, when to extract the cash, how much income the investor wants to extract and what other income sources they may have. I would recommend to read this post  which explains in detail Ltd vs buying in own name : http://www.progressiveproperty.co.uk/blog/buy-let-ltd-company-v-personal-investment/