Buy to Let Properties

**JavaTalent** · 8 April 2002, 14:30

tax structure

I think it depends on your preference for handling income/expenses on your personal account versus corporate account.

I have a US contracting company that holds income-producing properties, since it give me greater flexibility on tax arrangement. For example, it is more difficult on personal tax returns to claim deductions, while corporations have greater flexibility. Also corporate structure provides an acceptable vehicle to allows you to pyramid your wealth and solicit investors.

You also limit your personal liability using a corporate structure.

**QuackMonkey** · 8 April 2002, 15:41

Re: tax structure

I rent my BTL privately and my accountant suggested that was the best option to reduce the liablity for capital gains but I think that's because it used to be my home.

If the place you rent was your main home you can sell in up to three years and pay no CGT. If you sold it to your Ltd. company I guess that means the company gets the CGT.

Any accountants out there to correct that view?

Aside from that I can recommend the Woolwich and also you should speak to Tony Harris at Contractor Money - top guy and sorted my BTL for me.

**NeilW** · 10 April 2002, 11:01

Re: tax structure

BTL properties should always be bought personally, so that you can use CGT and various other reliefs. In a company it may end up turning you into a closed investment company and would raise your corporation tax liability to 30%.

Generally the concensus is that property investment is best done personally or in a partnership - at least until you have a *serious* portfolio.

**JavaTalent** · 11 April 2002, 23:30

BTL, CGT?

can you expand these acronyms?

What's the criteria for a closed investment company?

**OrangeHopper** · 11 April 2002, 23:36

Re: BTL, CGT?

BTL - Buy To Let.
CGT - Capital Gains Tax.

**JavaTalent** · 11 April 2002, 23:46

personal holdings

makes sense if you only have a single family home or duplex. NeilW made some good arguments for this....

I tend to think of my contracting company as part of a future industrial empire, so ignore my previous advice : )

**JoelHarding** · 17 April 2002, 18:57

BTL properties should ALWAYS be bought personally

Always is a very strong word NeilW. I think 'usually' might be more apt here. CGT allowances may not be available in the individual's circumstances and there are various reasons for owning BTL properties through companies (income splitting, stamp duty, ease of transferring partial ownership, etc).

**JoelHarding** · 17 April 2002, 18:58

BTL properties should ALWAYS be bought personally

Always is a very strong word NeilW. I think 'usually' might be more apt here. CGT allowances may not be available in the individual's circumstances and there are various reasons for owning BTL properties through companies (income splitting, stamp duty, etc).

**JavaTalent** · 19 April 2002, 05:51

spoken like a true 'tax advisor'!

JoelHarding, what's the best way for me to accumulate wealth rivaling Richard Branson?

Buy to Let Properties