#161

Starting with the end in mind is a familiar theme in UK property investing, but it’s not as easy as it sounds when it comes to tax planning.

For this episode, we’re going back into the archives to remind new listeners and refresh the memories of the rest of you about the importance and detail behind one of the most frequently asked questions of UK property investors:

Should you buy UK property in your own name or through a limited company?

We’ll also be having another look at group structures, and we’l be tapping into the knowledge and experience of long time friend of the pod, Sean the Property Tax Accountant.

Sean is a fully qualified Chartered accountant and an expat property investor.

So he knows what he's talking about!

During the show, we discuss:

- The importance of defining financial goals early and considering future changes

- Capital gains tax and dividend tax implications

- Comparison of tax amounts for limited company versus personal ownership

- Considerations for personal ownership versus passing properties to children

- Special purpose vehicles (SPVs) and their significance

- Separate companies for different property investment strategies

- Benefits of group structures for tax efficiency and property transfers

- Overview of Section 24 changes on rental income and mortgage interest

- Explanation of the 20% tax credit given for mortgage interest paid

- Implications for landlords and tax bills for high rate taxpayers

- Age, long-term plans, future income, and reinvestment of profits

- Reinvestment of profits and potential benefits for higher rate taxpayers

- Changes in corporation tax rates and their influence on decision-making

- Concept of holding company and subsidiary companies

- Flexibility in implementing new property strategies

- Simplifying asset transfers to children through shareholding in the holding company

- Importance of setting up the structure correctly from the start

- Seeking HMRC clearance for genuine commercial reasons

- Consultation with advisors before property transactions

- Decision-making between personal name and limited company ownership

- Impact of Section 24 on high rate taxpayers

- Significance of income tax thresholds and implications for rental income

Here is the Marginal Relief Calculator for Corporation Tax for profits of between 50K & 250K

Keywords:

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